Executive Summary

Q1 2025 delivered solid core trends but modest headline misses vs consensus: diluted EPS $1.13 vs ~$1.18 consensus and revenue ~$0.777B vs ~$0.795B reported GAAP revenue; NIM expanded 5 bps q/q and 16 bps y/y to 3.10% as deposit costs declined 17 bps q/q (cost of deposits 1.76%) . EPS consensus and revenue consensus values marked with an asterisk are from S&P Global; see disclaimer below.*
Adjusted PPNR rose 10% y/y to $267M; efficiency ratio of 66.6% reflected seasonal compensation and higher regulatory assessments; customer-related fees normalized from Q4’s record but remained up y/y .
Credit remained benign: NCOs 11 bps annualized; NPAs 0.51% of loans + OREO; ACL 1.24%; CRE nonaccruals stayed low; management flagged greater macro uncertainty tied to tariffs/trade policy .
Outlook: Zions guided 1Q26 vs 1Q25 to slightly/moderately higher NII, customer fees, and adjusted OpEx with positive operating leverage; loans stable-to-slightly increasing; management reaffirmed positive op leverage (1–2%) on a rolling-year basis in Q&A .
Capital/distribution: CET1 10.8%; dividend maintained at $0.43 (declared May 2); $41M of Q1 buybacks (0.8M shares) .

What Went Well and What Went Wrong

What Went Well

Deposit costs fell and NIM expanded for a fifth straight quarter (NIM 3.10%, +5 bps q/q, +16 bps y/y) as time deposits repriced down; total deposit spot rate ended March at 1.70% (interest-bearing 2.54%) .
Credit metrics remained strong: NCOs 0.11% annualized, NPAs 0.51%, CRE nonaccruals 0.43%; ACL steady at 1.24% .
Strategic execution: closed Coachella Valley branch acquisition (~$630M deposits, ~$420M loans) and advanced loan-origination tech via nCino to speed decisioning and improve client experience .
- Quote: “This reflects a 16 basis point increase in the net interest margin and a 10% increase in adjusted pre-provision net revenue” — Harris H. Simmons, CEO .
- Quote: “We are determined to build an AI-enabled culture” and provided an outlook amid tariff uncertainty .

What Went Wrong

Headline miss vs S&P Global consensus: EPS $1.13 vs ~$1.18; revenue ~$0.777B vs ~$0.795B GAAP; EPS impacted by a $0.11/share DTA revaluation charge from Utah tax law changes (expected to accrete back) . EPS and revenue consensus values marked with an asterisk are from S&P Global; see disclaimer below.*
Efficiency ratio worsened q/q (66.6% vs 62.0%) on seasonal comp, higher technology spend, and increased deposit insurance; customer-related fees fell 10% q/q from a record Q4, led by capital markets normalization .
Classified loans elevated to 4.82% of loans (vs 1.66% a year ago), largely in CRE (industrial/office) and C&I; management emphasized low LTVs, strong sponsorship and low nonaccruals, but investors will monitor migration closely .

Financial Results

Headline Metrics (Company-reported)

Metric	Q1 2024	Q4 2024	Q1 2025
Diluted EPS ($)	$0.96	$1.34	$1.13
Net Interest Income ($M)	$586	$627	$624
Noninterest Income ($M)	$156	$193	$171
Total Revenue (GAAP NII + Noninterest) ($M)	$742	$820	$795
Net Interest Margin (%)	2.94%	3.05%	3.10%
Adjusted PPNR ($M)	$242	$312	$267
Efficiency Ratio (Adj) (%)	67.9%	62.0%	66.6%
Provision for Credit Losses ($M)	$13	$41	$18
Net Charge-offs (annualized, %)	0.04%	0.24%	0.11%
NPAs / Loans + OREO (%)	0.44%	0.50%	0.51%
CET1 Ratio (%)	10.4%	10.9%	10.8%

Results vs S&P Global Consensus (Q1 2025)

Metric	Actual	Consensus	Δ
Diluted EPS ($)	$1.13	$1.18*	-$0.05
Revenue ($M)	$777	$794.8*	-$17.8

Values with an asterisk were retrieved from S&P Global. The consensus and “actual” shown in this table reflect S&P Global’s convention and may differ from company GAAP totals; please see company-reported revenue in the table above for GAAP NII + noninterest income .

Balance Sheet & Funding

Metric	Q1 2024	Q4 2024	Q1 2025
Loans & Leases (period-end, $B)	$58.11	$58.19	$59.24
Deposits (period-end, $B)	$74.24	$76.22	$75.69
Noninterest-bearing Demand ($B)	$25.14	$24.70	$24.79
Cost of Deposits (%)	2.06%	1.93%	1.76%
Borrowed Funds (period-end, $B)	$5.44	$4.78	$4.44

Noninterest Income Mix

Category ($M)	Q1 2024	Q4 2024	Q1 2025
Commercial Account Fees	44	47	45
Card Fees	23	24	23
Retail & Business Banking Fees	16	17	17
Loan-related Fees & Income	15	20	17
Capital Markets Fees & Income	25	40	27
Wealth Management Fees	15	14	15
Other Customer-related Fees	14	14	14
Customer-related Noninterest Income	152	176	158
Dividends & Other Income	6	9	7
Securities Gains (Losses), net	(2)	8	6
Total Noninterest Income	156	193	171

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Interest Income	1Q26 vs 1Q25	Not quantified prior quarter (Q4 commentary noted optimism for NIM improvement)	Slightly to moderately increasing; modeled +4.6% in implied path; +2.1% to +6.6% under ±100 bps shocks	Introduced upward bias
Customer-related Noninterest Income	1Q26 vs 1Q25	Not quantified	Slightly to moderately increasing; broader fee growth with lower capital markets growth vs prior view	Introduced upward bias
Adjusted Noninterest Expense	1Q26 vs 1Q25	Not quantified	Slightly to moderately increasing (tech, marketing, revenue investments); expect positive operating leverage	Introduced upward bias with leverage
Loans (period-end)	1Q26 vs 1Q25	Not quantified	Stable to slightly increasing; slower near term given tariff uncertainty; CRE/mortgage managed down	Introduced cautious
Common Equity	1Q26 vs 1Q25	Not quantified	Increasing organically (retained earnings, AOCI accretion)	Introduced upward
Operating Leverage	Rolling next 12 months	Not specified numerically	Positive operating leverage affirmed at ~1–2% (Q&A)	Explicitly affirmed
Dividend	Ongoing	$0.43/sh in Q4 2024	$0.43/sh declared for May 22, 2025	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
NIM / Deposit Costs	NIM strengthening; deposit stabilization noted in Q3 ; optimism for further NIM improvement in Q4	NIM +5 bps q/q to 3.10%; deposit cost -17 bps; total spot deposit rate 1.70%	Improving
Capital Markets / Fees	Q4 noted record capital markets; fees strong	Fees normalized q/q (down 10%) but +4% y/y; 1Q26 fee outlook slightly/modestly higher	Normalizing from high base
Credit / CRE	Q3 & Q4: rising classifieds, low realized losses	NCOs 11 bps; NPAs 0.51%; CRE nonaccruals low; classifieds elevated but mitigated by LTVs/guarantors	Stable losses; watch lists elevated
Macro / Tariffs	General macro caution prior	Heightened uncertainty explicitly tied to tariffs/trade; caution on loan demand/pipelines	Caution increased
Technology / AI	Core/digital upgrades mentioned historically	Selected nCino to transform commercial/small business origination; “AI-enabled culture” emphasis	Execution progressing
Capital / Buybacks	TBV growth; sub debt issuance in Nov-24	CET1 10.8%; $41M buybacks; preference to build ex-AOCI CET1 toward peer median	Balanced build + returns

Management Commentary

“First quarter net income and earnings per share increased 18% from last year’s period… [and] reflect a 16 basis point increase in the net interest margin and a 10% increase in adjusted pre-provision net revenue.” — Harris H. Simmons, CEO .
On tax impact: “$0.11 per share charge to income tax expense… from a beneficial Utah tax law change… expected to accrete back into income… [and] reduce the tax on securities income in future periods.” — Simmons .
On macro/tariffs: “The outlook for the economy is perhaps more uncertain… with potential negative impacts from tariffs and trade policy” — Simmons ; “I just don’t feel that anybody can credibly say that they understand what the impact is going to be” — Simmons (Q&A) .
On NII sensitivity: implied NII +4.6% by 1Q26 vs 1Q25 under forward curve; ±100 bps shocks imply +2.1% to +6.6% .
On expenses and leverage: expense opportunities across the bank to dampen growth; positive operating leverage targeted despite uncertainty .
On technology: selecting nCino to enhance end-to-end lending process and response speed .

Q&A Highlights

Loan growth outlook: Expect moderate growth to continue; some slowing in near term as clients await tariff clarity; CRE to be managed down via payoffs/refis; 1–4 family growth includes construction fund-ups and acquired loans .
NII guidance and rate sensitivity: A meaningful portion “baked in” to the curve; modeled +4.6% by 1Q26 vs 1Q25; deposit cost latency provides room even without Fed cuts .
Deposit pricing/funding: Total deposit spot rate at 1.70% (IB 2.54%); brokered CDs and short-term borrowings expected to be managed down with deposit growth and securities paydowns .
Credit/classifieds: Elevated classifieds driven by CRE (industrial/office) and C&I, but nonaccruals remain low; focus on C&I exposure to tariff-sensitive sectors (trucking/transport < $500M) .
Capital/returns: $40M FY25 repurchase authorization discussed; bias to build ex-AOCI CET1 toward peer levels before materially upsizing buybacks .

Estimates Context

Q1 2025 EPS of $1.13 modestly missed S&P Global consensus of ~$1.18, with an ~~$0.11/share tax DTA revaluation charge the key headwind; revenue was below S&P consensus (~~$0.777B vs ~$0.795B), though company-reported GAAP revenue (NII + noninterest) was $0.795B . EPS and revenue consensus values marked with an asterisk were retrieved from S&P Global.*
Potential estimate revisions:
- Modest downward EPS adjustments near term to reflect the Utah tax law timing effect; management expects accretion back over security lives .
- NII trajectories likely to hold or drift up on deposit cost tailwinds and asset remix; fee estimates may normalize post-Q4 record capital markets .

Key Takeaways for Investors

Core banking spread dynamics are improving: NIM expansion with falling deposit costs provides a clearer path to NII growth even amid uncertain rate cuts .
Credit remains a support: low realized losses and low CRE nonaccruals offset concerns about elevated classifieds; watch C&I pockets tied to tariffs and transportation .
Operating discipline continues, but expense seasonality and regulatory assessments can swing the efficiency ratio; management is pursuing multiple cost levers while investing in growth tech .
Guidance points to positive operating leverage and slightly/modestly higher NII and fees over the next year, with loans stable to modestly higher; deposit behavior and tariff policy are the swing factors .
Capital and distributions are balanced: CET1 10.8%, buybacks ongoing but sized prudently; dividend held at $0.43 .
Near-term trading setup: watch for incremental datapoints on deposit pricing (further cost relief), capital markets fee run-rate, and any tariff headlines affecting loan demand/credit sentiment; NIM resilience is a potential catalyst, while macro/trade shocks are the key risk .

Additional supporting data and disclosures:

Company reported: Net earnings to common $169M; EPS $1.13; NII $624M; noninterest income $171M; Adjusted PPNR $267M; efficiency ratio 66.6%; CET1 10.8%; NCOs 0.11%; NPAs 0.51% .
Dividend: $0.43 per share declared May 2, 2025 .
Strategic: Coachella Valley branch acquisition (~$630M deposits; ~$420M loans) and nCino platform selection .

S&P Global estimates disclaimer: Values marked with an asterisk were retrieved from S&P Global.

ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/ (ZION)·Q1 2025 Earnings Summary