- 18% increase in net earnings year-over-year to $169 million.
- 16 basis point improvement in net interest margin.
- Strategic expansion through acquisition of four California branches adding $630M in deposits and $420M in loans.
Zions Bancorporation (ZION, Financial) reported net earnings for the first quarter of 2025 totaling $169 million, or $1.13 per diluted share, marking an 18% increase from the $143 million ($0.96 per share) noted in Q1 2024. This strong year-over-year growth contrasts with a decrease from the $200 million ($1.34 per share) reported in Q4 2024.
The bank achieved a notable growth in profitability metrics, with a 16 basis point increase in its net interest margin. This improvement, along with a 10% rise in adjusted pre-provision net revenue, highlights Zions' strengthening fundamental performance.
A noteworthy development this quarter was the $0.11 per share tax charge caused by changes in Utah tax law. This adjustment affected the bank's earnings by requiring the revaluation of deferred tax assets, primarily those associated with the securities portfolio. However, future taxation on securities income is expected to decrease, and most of the charge should accrete back over time.
In March, Zions completed the acquisition of four branches in California's Coachella Valley from FirstBank, adding approximately $630 million in deposits and $420 million in loans. This acquisition enhances California Bank & Trust's market position with a favorable loan-to-deposit ratio of 67% on the acquired assets.
Credit quality remained stable with nonperforming assets at 0.51% of loans and leases, and annualized net charge-offs at 0.11%, unchanged from the previous quarter, indicating disciplined underwriting standards despite economic uncertainties.
While management remains cautious about the potential impacts of tariffs and trade policies on the economy, Zions Bancorporation expresses confidence in its credit culture and practices, suggesting a strategic preparedness for navigating potential economic challenges.
