Zions Bancorporation, National Association (ZIONP) Financials

Zions Bancorporation, N.A. (NASDAQ: ZION) has shown a generally stable financial performance over the last four years, with some fluctuations reflective of broader economic factors impacting the banking sector.

Key positive trends:

• Net interest income has remained robust, with Q1 2025 reporting $624 million, closely consistent with previous quarters, highlighting stable core banking revenue.
• Non-interest income shows diversity and healthy contribution, with Q1 2025 non-interest income at $171 million, supported by trust fees, service charges, and investment banking activities.
• Provision for credit losses has generally declined from a peak in earlier years ($71 million in Q3 2022) to $17 million in Q1 2025, indicating improved credit quality and lower loan loss expectations.
• Net income attributable to common shareholders has grown, reaching $169 million in Q1 2025 despite challenging interest rate environments, signaling effective cost controls and business resilience.
• Deposits remain a strong funding source, with total deposits of approximately $75 billion at Q1 2025, supporting asset growth and liquidity.
• Operating cash flow remains positive, with Q1 2025 net cash from operating activities at $179 million, indicating solid operating performance.
• The bank’s balance sheet remains strong with total assets steady around $88 billion, showcasing consistent lending and investment activities.
• Dividends to common shareholders have been steady at $0.41-$0.43 per share per quarter, demonstrating commitment to shareholder returns.
• Capital structure is stable with total common equity increasing from approximately $4.2 billion in early 2022 to $6.26 billion at Q1 2025, supporting growth and risk absorption capacity.

Neutral factors:

• Interest expense has increased notably from $115 million in Q4 2022 to $404 million in Q1 2025, reflecting higher market interest rates and debt costs but this is partly offset by rising interest income.
• Loan balances have grown modestly but with some volatility, hovering near $59 billion net of allowance in recent quarters, which requires ongoing credit monitoring.
• Allowance for loan and lease losses fluctuates but remains near $700 million, aligning broadly with loan levels and provision expenses.
• Trading account securities portfolio is significant at about $18.8 billion in Q1 2025, which may expose the bank to market risk volatility but also earnings diversification.

Potential negative considerations:

• Non-interest expense has increased to $538 million in Q1 2025 from prior quarters, driven by higher salaries, occupancy, and property & liability insurance claims, pressuring profit margins.
• Net cash used in financing activities was $1.66 billion in Q1 2025, mainly driven by deposit outflows and debt repayments, which could constrain liquidity if prolonged.
• Accumulated other comprehensive loss remains substantial at negative $2.25 billion as of Q1 2025, reflecting unrealized losses in securities which can impact equity and regulatory capital.
• Earnings per share have shown some decline in recent quarters, from $1.33 diluted EPS in Q2 2024 to $1.13 in Q1 2025, suggestive of margin pressure and cautious investor outlook.
• Loan growth is moderate and somewhat erratic over quarters, possibly indicating cautious loan demand or credit tightening impacting revenue growth potential.
• High level of cash interest paid ($423 million in Q1 2025) could weigh on net interest margin, particularly if funding costs continue to rise before earnings adjust.

Overall, Zions Bancorporation has demonstrated strong resilience with steady asset growth, disciplined credit management, and consistent profitability over the last four years. Investors should monitor the rising funding costs, increasing operating expenses, and market risks from securities holdings as factors that could impact near-term financial performance.