Zions Bancorporation, N.A. (ZION) Financials

Zions Bancorporation, National Association (NASDAQ: ZIONP) has shown a generally stable financial profile over the past several quarters, with some notable trends and changes observed in its recent quarterly financial statements through Q1 2025.

Positive Aspects:

• The bank's net interest income has remained strong in Q1 2025 at $624 million, close to previous quarters, signaling steady core earnings from lending and borrowing activities.
• Non-interest income was $171 million in Q1 2025, showing contributions from trust fees, service charges, and investment banking income, supporting revenue diversification beyond interest income.
• Zions reported a net income attributable to common shareholders of $169 million in Q1 2025, illustrating profitability despite some pressure compared to prior quarters.
• The balance sheet shows growth in net loans and leases to $59.24 billion at Q1 2025, reflecting ongoing lending activity and client growth.
• Cash flow from operating activities remains positive at $179 million in Q1 2025, evidencing healthy cash generation from the bank's core operations.
• Net cash provided by investing activities was strong at $1.66 billion in Q1 2025, largely due to sales/maturities of investments exceeding purchases.
• The company sustained a stable dividend payout of $0.43 per common share in Q1 2025, underlining commitment to shareholder returns.
• Allowance for loan and lease losses was stable around $697 million, suggesting prudent credit risk management relative to the loan portfolio size.

Neutral Aspects:

• Total assets slightly fluctuated, ending at approximately $87.99 billion in Q1 2025, consistent with previous quarters.
• Weighted average shares outstanding have hovered around 147 million shares, indicating no significant dilution or buyback activity in recent periods.
• Non-interest expenses, including salaries, occupancy, marketing, and insurance claims, totaled $538 million in Q1 2025, remaining relatively consistent with prior quarters.

Negative Aspects:

• Net income in Q1 2025 at $170 million decreased compared to stronger quarters like Q4 2024 ($216 million) and Q3 2024 ($214 million), indicating some recent pressure on profitability.
• Provision for credit losses has increased to $17 million in Q1 2025 from $5 million or less in some prior quarters, signaling potential concerns about credit quality.
• Cash flow from financing activities was a large outflow of $1.66 billion in Q1 2025, due largely to significant decreases in deposits and debt payments, which could impact liquidity if continuing.
• Deposits have experienced notable net outflows ($1.19 billion in Q1 2025), which may pressure funding sources going forward.
• Interest expense on deposits and long-term debt rose or remained elevated quarter-over-quarter, resulting in relatively high total interest expenses near $404 million in Q1 2025, pressuring net interest margin.
• The accumulated other comprehensive income/loss remains negative around -$2.25 billion, reducing the total common equity and reflecting unrealized losses possibly from investments or other comprehensive items.
• From earlier years, property and liability insurance claims remain a significant recurring expense (~$22 million in Q1 2025), which can weigh on operating earnings.

Summary:

Zions Bancorporation has maintained a healthy asset base and relatively stable core interest income while demonstrating consistent profitability and positive cash flows. However, recent signs of pressure include declining net income compared to prior quarters, increasing credit loss provisions, and substantial cash outflows from financing activities driven by deposit reductions and debt repayments. The company’s ability to manage deposit outflows and control credit risk will be critical for sustaining earnings growth. Investors should monitor trends in loan growth, credit quality, and funding stability in coming quarters to assess sustained performance.