Zions Bancorporation, N.A. One South Main Salt Lake City, UT 84133 January 21, 2025
www.zionsbancorporation.com

1 Comparisons noted in the bullet points are calculated for the current quarter compared with the same prior year period unless otherwise specified.

2 For information on non-GAAP financial measures, see pages 19-21.

3 Does not include banking premises held for sale.

1 Taxable-equivalent rates used where applicable.

Net interest income increased $44 million, or 8%, in the fourth quarter of 2024, relative to the prior year period, primarily as a result of lower funding costs. Net interest income also benefited from growth in average interest-earning assets. The net interest margin was 3.05%, compared with 2.91%.

The yield on average interest-earning assets was 5.13% in the fourth quarter of 2024, compared with 5.15% in the prior year period. The yield on average loans and leases decreased 2 basis points to 5.92%, and the yield on average securities decreased 11 basis points to 2.73% in the fourth quarter of 2024, reflecting lower interest rates.

The rate paid on total deposits and interest-bearing liabilities was 2.12%, compared with 2.25% in the prior year quarter, and the cost of total deposits was 1.93%, compared with 2.06%, reflecting the lower interest rate environment.

Average interest-earning assets increased $2.3 billion, or 3% from the prior year quarter, as growth of $2.2 billion in average loans and leases and $1.5 billion in average money market investments, was partially offset by a decline of $1.4 billion in average securities. The decrease in average securities was primarily due to principal reductions.

Average interest-bearing liabilities increased $3.0 billion, or 6%, from the prior year quarter, driven by increases of $2.5 billion and $0.5 billion in average interest-bearing deposits and average borrowed funds, respectively.

Customer-related noninterest income increased $23 million, or 15%, compared with the prior year period. Capital markets fees increased $18 million, largely due to increased swap fees, real estate capital markets activity, and syndication fees. Commercial account fees increased $4 million, primarily due to growth in account analysis and treasury management sweep fees, and loan-related fees and income increased $4 million, mainly due to higher gains on loan sales and unused loan commitment fees.

Noncustomer-related noninterest income increased $22 million, compared with the prior year period. Fair value and nonhedge derivative income increased $12 million, primarily due to credit valuation adjustments on client-related interest rate swaps, and net securities gains increased $9 million, largely due to valuation adjustments in our SBIC investment portfolio.

1 For information on non-GAAP financial measures, see pages 19-21.

Noninterest expense decreased $72 million, or 12%, relative to the prior year quarter. Deposit insurance and regulatory expense decreased $92 million, or 84%, largely due to a $90 million accrual associated with the FDIC special assessment during the prior year quarter. This decrease was partially offset by an increase of $20 million, or 7%, in salaries and employee benefits expense, primarily due to higher incentive compensation, salary, and benefit accruals.

Adjusted noninterest expense increased $20 million, or 4%. The efficiency ratio was 62.0%, compared with 65.1%, as the increase in adjusted taxable-equivalent revenue outpaced the increase in adjusted noninterest expense. For information on non-GAAP financial measures, see pages 19-21.

Total investment securities decreased $1.9 billion, or 9%, to $18.8 billion at December 31, 2024, largely due to principal reductions. We invest in securities to actively manage liquidity and interest rate risk and to generate interest income. We primarily own securities that can readily provide us cash and liquidity through secured borrowing agreements without the need to sell the securities. Our fixed-rate securities portfolio helps balance the inherent interest rate mismatch between loans and deposits and protects the economic value of shareholders' equity.

Loans and leases, net of unearned income and fees, increased $1.6 billion, or 3%, to $59.4 billion, relative to the prior year quarter. Consumer loans increased $1.1 billion from the prior year quarter, primarily in the 1-4 family residential loan portfolio, and commercial loans increased $0.4 billion, primarily in the commercial and industrial loan portfolio.

During the fourth quarter of 2024, we recorded a $41 million provision for credit losses, compared with a provision of less than $1 million during the prior year period. The allowance for credit losses (“ACL”) was $741 million at December 31, 2024, compared with $729 million at December 31, 2023. The increase in the ACL primarily reflects loan growth, credit quality deterioration, and higher reserves associated with portfolio-specific risks including commercial real estate (“CRE”), partially offset by improvements in economic forecasts. The ratio of ACL to total loans and leases remained relatively stable at 1.25% at December 31, 2024, compared with 1.26% at December 31, 2023.

Net loan and lease charge-offs totaled $36 million, compared with $9 million in the prior year quarter, primarily due to a $24 million charge-off on one commercial and industrial loan. Nonperforming as sets totaled $298 million, or 0.50%, of total loans and leases and other real estate owned, compared with $228 million, or 0.39%. The increase in nonperforming assets was primarily due to a small number of loans in the commercial and industrial and term CRE portfolios.

Classified loans totaled $2.9 billion, or 4.83%, of total loans and leases, compared with $825 million, or 1.43%. The increase in classified loans was primarily in the multifamily and industrial CRE loan portfolios, largely due to an increased emphasis in risk grading on current cash flows, and less emphasis on the adequacy of collateral values and the strength of guarantors and sponsors. The increase in classified loans was also attributable to weaker performance, particularly for 2021 and 2022 construction loan vintages, as borrowers missed projections due to longer-than-anticipated lease-up periods, rent concessions, elevated costs, and higher interest rates. The loss content of our CRE loan portfolio continues to be mitigated by strong underwriting, supported by high borrower equity and guarantor support; consequently, our CRE nonperforming assets have remained relatively stable.

Total deposits increased $1.3 billion from the prior year quarter, as a $2.8 billion increase in interest-bearing deposits was partially offset by a $1.5 billion decrease in noninterest-bearing demand deposits. At December 31, 2024, customer deposits (excluding brokered deposits) totaled $71.2 billion, compared with $70.5 billion at December 31, 2023, and included approximately $7.0 billion and $6.8 billion of reciprocal deposits, respectively. Our loan-to-deposit ratio was 78%, compared with 77% in the prior year quarter.

Total borrowed funds, consisting primarily of secured borrowings, decreased $139 million, or 3%, from the prior year quarter, as a decline in security repurchase agreements was partially offset by an increase in long-term debt. The increase in long-term debt was due to the issuance of $500 million of 6.82% Fixed-to-Floating Subordinated Notes due 2035, partially offset by the redemption of $88 million of 6.95% Fixed-to-Floating Subordinated Notes due 2028 during the fourth quarter of 2024.

Preferred stock decreased $374 million due to the redemption of the outstanding shares of our Series G, I, and J preferred stock during the fourth quarter of 2024. The redemption resulted in a one-time reduction to net earnings applicable to common shareholders of approximately $6 million arising from the accelerated recognition of preferred stock issuance costs.

The common stock dividend was $0.43 per share, compared with $0.41 during the fourth quarter of 2023. Common shares outstanding decreased 0.3 million from the fourth quarter of 2023, primarily due to common stock repurchases in the first quarter of 2024.

Accumulated other comprehensive income (loss) (“AOCI”) was a loss of $2.4 billion at December 31, 2024, an improvement of $312 million when compared with December 31, 2023, and largely reflects a decline in the fair value of fixed-rate available-for-sale securities as a result of changes in interest rates. Absent any sales or credit impairment of these securities, the unrealized losses will not be recognized in earnings. We do not intend to sell any securities with unrealized losses. Although changes in AOCI are reflected in shareholders’ equity, they are currently excluded from regulatory capital, and therefore do not impact our regulatory capital ratios.

Estimated common equity tier 1 (“CET1”) capital was $7.4 billion, an increase of 7%, compared with $6.9 billion in the prior year period. The estimated CET1 capital ratio was 10.9%, compared with 10.3%. Tangible book value per common share increased to $33.85, compared with $28.30, primarily due to an increase in retained earnings and reduced unrealized losses in AOCI. For more information on non-GAAP financial measures, see pages 19-21.

Zions has posted a supplemental presentation to its website, which will be used to discuss the fourth quarter results at 5:30 p.m. ET on January 21, 2025. Media representatives, analysts, investors, and the public are invited to join this discussion by calling (877) 709-8150 (domestic and international) and using the meeting number 13750908, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation website at zionsbancorporation.com. The webcast of the conference call will also be archived and available for 30 days.

Zions Bancorporation, N.A. is one of the nation's premier financial services companies with approximately $89 billion of total assets at December 31, 2024, and annual net revenue of $3.1 billion in 2024. Zions operates under local management teams and distinct brands in 11 western states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The Bank is a consistent recipient of national and state-wide customer survey awards in small- and middle-market banking, as well as a leader in public finance advisory services and Small Business Administration lending. In addition, Zions is included in the S&P MidCap 400 and NASDAQ Financial 100 indices. Investor information and links to local banking brands can be accessed at www.zionsbancorporation.com.

This earnings release 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:

•Statements with respect to the beliefs, plans, objectives, goals, targets, commitments, designs, guidelines, expectations, anticipations, and future financial condition, results of operations, and performance of Zions Bancorporation, National Association and its subsidiaries (collectively “Zions Bancorporation, N.A.,” “the Bank,” “we,” “our,” “us”); and Press Release – Page 8

•Statements preceded or followed by, or that include the words “may,” “might,” “can,” “continue,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “forecasts,” “expect,” “intend,” “target,” “commit,” “design,” “plan,” “projects,” “will,” and the negative thereof and similar words and expressions.

Forward-looking statements are not guarantees, nor should they 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, important 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 elevated inflation, economic slowdown or recession, or other economic challenges; changes in interest and reference rates, which could adversely affect our revenue and expenses, the value of assets and liabilities, and the availability and cost of capital and liquidity; deterioration in economic conditions that may result in increased loan and lease losses;

•The effects of newly enacted and proposed regulations affecting us and the banking industry, as well as changes and uncertainties in applicable laws, and fiscal, monetary, regulatory, trade, and tax policies;

•Actions taken by governments, agencies, central banks, and similar organizations, including those that result in decreases in revenue, increases in regulatory bank fees, insurance assessments, and capital standards; and other regulatory requirements;

•Judicial, regulatory and administrative inquiries, investigations, examinations or proceedings and the outcomes thereof that create uncertainty for, or are adverse to us or, the banking industry;

•Changes in our credit ratings;

•Our ability to innovate and otherwise address competitive pressures and other factors that may affect aspects of our business, such as pricing, relevance of and demand for our products and services, and our ability to recruit and retain talent;

•The potential for both positive and disruptive impacts of technological advancements, such as digital currencies and commerce, blockchain, artificial intelligence, quantum and cloud computing, and other innovations affecting us and the banking industry;

•Our ability to complete projects and initiatives and execute on our strategic plans, manage our risks, control compensation and other expenses, and achieve our business objectives;

•Our ability to develop and maintain technology, information security systems, and controls designed to guard against fraud, cybersecurity, and privacy risks and related incidents;

•Our ability to provide adequate oversight of our suppliers to help us prevent or mitigate effects upon us and our customers of inadequate performance, systems failures, or cyber and other incidents by, or affecting, third parties upon whom we rely for the delivery of various products and services;

•The effects of wars and geopolitical conflicts, and other local, national, or international disasters, crises, or conflicts that may occur in the future;

•Natural disasters, pandemics, catastrophic events, and other emergencies and incidents, and their impact on our and our customers’ operations, business, and communities, including the increasing difficulty in, and the expense of, obtaining property, auto, business, and other insurance products;

•Governmental and social responses to environmental, social, and governance issues, including those with respect to climate change;

•Securities and capital markets behavior, including volatility and changes in market liquidity and our ability to raise capital;

•The possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and shareholders’ equity;

•The impact of bank closures or adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks; Press Release – Page 9

•Adverse news and other expressions of negative public opinion whether directed at us, other banks, the banking industry, or otherwise that may adversely affect our reputation and that of the banking industry generally;

•Protracted congressional negotiations and political stalemates regarding government funding and other issues, including those that increase the possibility of government shutdowns, downgrades in United States (“U.S.”) credit ratings, or other economic disruptions; and

•Other assumptions, risks, or uncertainties described in this earnings release, and other SEC filings.

We caution against the undue reliance on forward-looking statements, which reflect our views only as of the date they are made. Except to the extent required by law, we specifically disclaim any obligation to update any factors or to publicly announce the revisions to any forward-looking statements to reflect future events or developments.

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1 At period end.

2 For information on non-GAAP financial measures, see pages 19-21.

3 The decrease in the effective tax rate at December 31, 2023 was the result of changes in the reserve for uncertain tax positions.

4 Current period ratios and amounts represent estimates.

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1 Includes loans held for sale.

2 Does not include banking premises held for sale.

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1 Does not include loans held for sale.

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