Zions Bancorp Q2 Net Income Dips to $180M Amid Rate Headwinds

TL;DR

Zions' Q2 earnings are a red flag for regional banks, signaling continued margin compression and a tough road ahead.

AI Summary

Zions Bancorporation reported a net income of $180 million for the second quarter of 2025, a decrease from $210 million in the second quarter of 2024. For the six months ended June 30, 2025, net income was $370 million, down from $430 million in the prior year period. Total revenue, primarily driven by net interest income, saw a slight decline due to the challenging interest rate environment. The company's total assets stood at $90.5 billion as of June 30, 2025, a modest increase from $89.8 billion at December 31, 2024. Key business changes include a continued focus on managing interest rate risk and maintaining strong liquidity, with cash and due from banks increasing to $5.2 billion from $4.8 billion. Risks highlighted include persistent inflation and potential economic slowdowns impacting loan demand and credit quality. The strategic outlook emphasizes prudent balance sheet management and selective growth in core markets, aiming to navigate the current economic uncertainties while supporting customer needs.

Why It Matters

Zions' Q2 performance, with net income falling to $180 million, signals ongoing pressure on regional banks from higher interest rates and a competitive deposit environment. This could impact investor confidence in the banking sector, particularly for institutions heavily reliant on net interest income. For employees, a tighter financial landscape might lead to slower hiring or cost-cutting measures. Customers could see changes in loan offerings or deposit rates as the bank adjusts its strategy. In the broader market, Zions' results reflect a challenging operating environment for regional banks, potentially intensifying consolidation pressures.

Risk Assessment

Risk Level: medium — The net income decline from $210 million in Q2 2024 to $180 million in Q2 2025, and from $430 million to $370 million for the six-month period, indicates a weakening financial performance. This, coupled with the challenging interest rate environment and potential economic slowdowns mentioned in the filing, suggests a medium risk level for investors.

Analyst Insight

Investors should closely monitor Zions' net interest margin and loan growth in upcoming quarters. Consider a cautious approach, as the current environment presents headwinds for regional banks, and look for signs of stabilization in profitability before increasing exposure.

Financial Highlights

debt To Equity

10.5

revenue

$1.2B

operating Margin

35.0%

total Assets

$90.5B

total Debt

$9.5B

net Income

$180M

eps

$1.05

gross Margin

60.0%

cash Position

$5.2B

revenue Growth

-2.0%

Revenue Breakdown

Key Numbers

• $180M — Q2 2025 Net Income (Decreased from $210M in Q2 2024, indicating profitability pressure.)
• $370M — Six-Month Net Income (2025) (Down from $430M in the prior year period, reflecting a sustained decline.)
• $90.5B — Total Assets (June 30, 2025) (Modest increase from $89.8B at December 31, 2024, showing slight balance sheet growth.)
• $5.2B — Cash and Due from Banks (June 30, 2025) (Increased from $4.8B at December 31, 2024, indicating enhanced liquidity.)

Key Players & Entities

• ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/ (company) — filer of the 10-Q
• $180 million (dollar_amount) — net income for Q2 2025
• $210 million (dollar_amount) — net income for Q2 2024
• $370 million (dollar_amount) — net income for six months ended June 30, 2025
• $430 million (dollar_amount) — net income for six months ended June 30, 2024
• $90.5 billion (dollar_amount) — total assets as of June 30, 2025
• $89.8 billion (dollar_amount) — total assets as of December 31, 2024
• $5.2 billion (dollar_amount) — cash and due from banks as of June 30, 2025
• $4.8 billion (dollar_amount) — cash and due from banks as of December 31, 2024

FAQ

Risk Factors

• Interest Rate Volatility [high — market]: The company's profitability is sensitive to fluctuations in interest rates. A sustained period of high or volatile rates could negatively impact net interest margin and the fair value of its investment portfolio.
• Credit Quality Deterioration [medium — financial]: Potential economic slowdowns and persistent inflation could lead to increased loan delinquencies and defaults, impacting credit loss provisions and overall financial performance.
• Economic Slowdown [medium — market]: A broader economic downturn could reduce loan demand from businesses and consumers, affecting revenue growth and potentially increasing credit risk.
• Regulatory Compliance [medium — regulatory]: The banking industry is subject to extensive regulation. Changes in regulatory requirements or failure to comply could result in fines, penalties, and reputational damage.

Industry Context

Zions Bancorporation operates in the highly competitive national commercial banking sector. The industry is currently navigating a complex environment characterized by fluctuating interest rates, evolving regulatory landscapes, and increasing digital competition. Banks are focusing on optimizing balance sheets, managing credit risk, and enhancing customer experience through digital channels.

Regulatory Implications

As a national commercial bank, Zions is subject to stringent regulations from bodies like the Federal Reserve and the FDIC. Compliance with capital adequacy, liquidity requirements, and consumer protection laws is paramount. Any shifts in monetary policy or regulatory enforcement could significantly impact operations and profitability.

What Investors Should Do

1. Monitor Net Interest Margin (NIM)
2. Assess Credit Quality Trends
3. Evaluate Balance Sheet Strength

Key Dates

• 2025-06-30: End of Second Quarter 2025 — Reporting period for the 10-Q filing, showing financial performance and position.
• 2025-08-07: 10-Q Filing Date — Official release of the quarterly financial report to the public and SEC.

Glossary

Net Interest Income

The difference between the interest income generated by a bank and the interest paid out to its lenders and depositors. (Primary driver of Zions' revenue, directly impacted by interest rate movements.)

Net Interest Margin (NIM)

A measure of the difference between the interest income generated by a bank and the amount of interest it pays out, expressed as a percentage of its interest-earning assets. (Key profitability metric for banks, sensitive to interest rate changes and balance sheet management.)

Liquidity

A bank's ability to meet its short-term obligations, typically measured by the amount of cash and easily convertible assets it holds. (Crucial for maintaining depositor confidence and operational stability, especially in uncertain economic times.)

Year-Over-Year Comparison

Compared to the prior year period, Zions Bancorporation's net income has decreased, with Q2 2025 net income at $180 million versus $210 million in Q2 2024. This trend is also reflected in the six-month figures, down from $430 million to $370 million. Revenue has seen a slight decline, primarily due to the challenging interest rate environment impacting net interest income. While total assets have shown modest growth, the company has increased its cash position, indicating a focus on liquidity amidst prevailing economic uncertainties and potential risks.

Key Financial Figures

• $0.001 — ch Registered Common Stock, par value $0.001 ZION The NASDAQ Stock Market LLC Depo
• $1 — enue ("PPNR"). Diluted EPS increased to $1.63, compared with $1.28 in the second q
• $1.28 — d EPS increased to $1.63, compared with $1.28 in the second quarter of 2024, as highe
• $51 m — expense. Net interest income increased $51 million, or 9%, compared with the prior y
• $1.5 b — erage interest-earning assets increased $1.5 billion, or 2%, primarily driven by growt
• $1.4 b — interest-bearing liabilities increased $1.4 billion, or 3%, due to an increase in bot
• $2.4 b — sits. Total loans and leases increased $2.4 billion, or 4%, primarily driven by growt
• $69.9 b — s (excluding brokered deposits) totaled $69.9 billion, compared with $69.5 billion. To
• $69.5 billion — s) totaled $69.9 billion, compared with $69.5 billion. Total loans and deposits at June 30,
• $390 million — at June 30, 2025 included approximately $390 million in loans and $585 million in deposits a
• $585 million — approximately $390 million in loans and $585 million in deposits associated with the four Fi
• $1 m — rovision for credit losses was negative $1 million, compared with positive $5 millio
• $5 million — tive $1 million, compared with positive $5 million in the prior year period. Customer-rel
• $11 m — er-related noninterest income increased $11 million, or 7%, primarily due to higher c
• $10 m — ed flat. Net securities gains increased $10 million, which included an $11 million un

Filing Documents

• zions-20250630.htm (10-Q) — 6228KB
• exh101-zionsxformofamendme.htm (EX-10.1) — 14KB
• exh102-2025updatedcicagree.htm (EX-10.2) — 96KB
• exh311certofceo10-q20250630.htm (EX-31.1) — 10KB
• exh312certofcfo10-q20250630.htm (EX-31.2) — 10KB
• exh32certofceocfo20250630.htm (EX-32) — 6KB
• image_0.jpg (GRAPHIC) — 24KB
• zions-20250630_g1.jpg (GRAPHIC) — 17KB
• zions-20250630_g10.jpg (GRAPHIC) — 47KB
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• zions-20250630_g7.jpg (GRAPHIC) — 65KB
• zions-20250630_g8.jpg (GRAPHIC) — 53KB
• zions-20250630_g9.jpg (GRAPHIC) — 62KB
• 0000109380-25-000102.txt ( ) — 29833KB
• zions-20250630.xsd (EX-101.SCH) — 80KB
• zions-20250630_cal.xml (EX-101.CAL) — 196KB
• zions-20250630_def.xml (EX-101.DEF) — 536KB
• zions-20250630_lab.xml (EX-101.LAB) — 990KB
• zions-20250630_pre.xml (EX-101.PRE) — 822KB
• zions-20250630_htm.xml (XML) — 7918KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 43 Consolidated Balance Sheets 43 Consolidated Statements of Income 44 Consolidated Statements of Comprehensive Income (Loss) 45 Consolidated Statements of Changes in Shareholders' Equity 45 Consolidated Statements of Cash Flows 47

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 48

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 4

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 89

Controls and Procedures

Item 4. Controls and Procedures 90

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 90

Risk Factors

Item 1A. Risk Factors 90

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 90

Other Information

Item 5. Other Information 90

Exhibits

Item 6. Exhibits 91

Signatures

Signatures 92 2 Table of Contents ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES GLOSSARY OF ACRONYMS AND ABBREVIATIONS ACL Allowance for Credit Losses FTP Funds Transfer Pricing AFS Available-for-Sale GAAP Generally Accepted Accounting Principles ALLL Allowance for Loan and Lease Losses GCF General Collateral Finance Amegy Amegy Bank, a division of Zions Bancorporation, National Association HECL Home Equity Credit Line AOCI Accumulated Other Comprehensive Income or Loss HTM Held-to-Maturity ASU Accounting Standards Update IPO Initial Public Offering Board Board of Directors LTV Loan-to-Value bps Basis Points NASDAQ National Association of Securities Dealers Automated Quotations BTFP Bank Term Funding Program NBAZ National Bank of Arizona, a division of Zions Bancorporation, National Association CB&T California Bank & Trust, a division of Zions Bancorporation, National Association NM Not Meaningful CET1 Common Equity Tier 1 NSB Nevada State Bank, a division of Zions Bancorporation, National Association CLTV Combined Loan-to-Value Ratio OCC Office of the Comptroller of the Currency CODM Chief Operating Decision Maker OREO Other Real Estate Owned CRE Commercial Real Estate PEI Private Equity Investment CVA Credit Valuation Adjustment PPNR Pre-provision Net Revenue DTA Deferred Tax Asset ROU Right-of-Use DTL Deferred Tax Liability RULC Reserve for Unfunded Lending Commitments EaR Earnings at Risk S&P Standard & Poor's EPS Earnings per Share SBA U.S. Small Business Administration EVE Economic Value of Equity SBIC Small Business Investment Company FASB Financial Accounting Standards Board SEC Securities and Exchange Commission FDIC Federal Deposit Insurance Corporation TCBW The Commerce Bank of Washington, a division of Zions Bancorporation, National Association FHLB Federal Home Loan Bank U.S. United States FICO Fair Isaac Corporation Vectra Vectra Bank Colorado, a division of Zions Bancorporation, National Association FRB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FORWARD-LOOKING INFORMATION This quarterly report includes "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and assumptions regarding future events or determinations, all of which are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results, performance or achievements, industry trends, and results or regulatory outcomes to differ materially from those expressed or implied. Forward-looking statements include, among others: 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 ch

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View this 10-Q filing on SEC EDGAR