Zions Bancorporation, National Association (ZION): history, ownership, mission, how it works & makes money

A Brief History of Zions Bancorporation

Zions Bancorporation, National Association (ZION), has established itself as a significant player in the banking sector, primarily serving the western United States. As of June 30, 2024, the bank reported total assets of approximately $87.6 billion, demonstrating a strong position in the financial market.

Financial Performance

For the second quarter of 2024, Zions Bancorporation recorded a net income of $201 million, which marked an increase compared to $175 million in the same quarter of the previous year. The earnings per diluted share for this period were $1.28.

Loan Portfolio

As of June 30, 2024, the total loans and leases portfolio stood at $58.4 billion, an increase of $636 million or 1% from December 31, 2023. The composition of the loan portfolio is as follows:

Capital Structure

Zions Bancorporation's long-term debt as of June 30, 2024, was $546 million, reflecting a slight increase from $542 million at the end of 2023. The bank's total shareholders' equity was reported at $6.025 billion, increasing from $5.691 billion.

Investment Securities

The bank's investment securities portfolio included held-to-maturity (HTM) and available-for-sale (AFS) securities, valued at a total of $21.1 billion as of June 30, 2024. The estimated fair value of these securities was $19.4 billion, reflecting unrealized losses due to interest rate fluctuations.

Recent Developments

In July 2024, Zions Bancorporation completed a major technology upgrade, modernizing its core banking systems. This transition is expected to enhance operational efficiency and improve customer service.

Market Position and Regulatory Environment

Zions Bancorporation continues to adapt to regulatory changes, including proposals related to capital requirements from federal bank regulators. As of June 30, 2024, the bank does not qualify as a large banking organization under the new Basel III Endgame proposals.

Overall, Zions Bancorporation has demonstrated resilience and adaptability in a challenging financial environment, continuing to serve its customer base effectively while maintaining a robust financial position.

A Who Owns Zions Bancorporation, National Association (ZION)

Institutional Ownership

As of June 30, 2024, Zions Bancorporation reported a significant level of institutional ownership. The following table outlines the major institutional shareholders:

Insider Ownership

Insider ownership is also a significant aspect of Zions Bancorporation's equity structure. The following table details the ownership stakes held by key executives and board members:

Shareholder Composition

As of June 30, 2024, Zions Bancorporation's total outstanding shares were approximately 147.7 million. The breakdown of shareholder composition is as follows:

Recent Shareholder Changes

During the first half of 2024, Zions Bancorporation experienced a 3% reduction in shares held by institutional investors, while insider purchases increased by 10% compared to the previous year. This indicates a trend of increased confidence from insiders amidst market fluctuations.

Market Performance and Stock Trends

Zions Bancorporation's stock (ZION) performance as of June 30, 2024, reflected a market capitalization of approximately $4.2 billion. The stock price was trading at $28.50 per share, showing a year-to-date increase of 15% despite economic headwinds in the banking sector. The following table outlines key stock performance metrics:

Conclusion on Ownership Structure

The ownership structure of Zions Bancorporation as of 2024 demonstrates a strong institutional presence alongside committed insider ownership. This combination may contribute to the bank's stability and strategic decision-making in the market.

Zions Bancorporation, National Association (ZION) Mission Statement

Company Overview

Zions Bancorporation operates as a bank holding company, offering various financial services through its subsidiaries. The company primarily focuses on commercial banking, consumer banking, and wealth management services. As of June 30, 2024, Zions Bancorporation reported total assets of $87.606 billion.

Mission Statement

The mission statement of Zions Bancorporation emphasizes a commitment to delivering exceptional banking services tailored to meet the needs of its diverse customer base. The company aims to foster long-term relationships by providing innovative financial solutions while maintaining a strong focus on community involvement and responsible banking practices.

Core Values

• Integrity: Upholding ethical standards in all operations.
• Customer Focus: Prioritizing customer needs and satisfaction.
• Innovation: Encouraging creativity and new ideas in service delivery.
• Collaboration: Working together to achieve common goals.
• Community Engagement: Supporting local initiatives and development.

Financial Performance

As of the second quarter of 2024, Zions Bancorporation reported the following financial data:

Community and Social Responsibility

Zions Bancorporation is dedicated to community service, investing in local initiatives, and contributing to economic development. The bank actively participates in various community engagement programs and offers financial literacy resources to support underserved populations.

Recent Initiatives

In 2024, Zions Bancorporation launched several initiatives aimed at enhancing customer experience and operational efficiency:

• Transitioned to a modern integrated core banking system to improve service delivery.
• Enhanced digital banking capabilities to provide customers with seamless access to financial services.
• Implemented comprehensive training programs for employees focused on customer service excellence.

Conclusion

The mission statement of Zions Bancorporation reflects its commitment to providing exceptional banking services while emphasizing community engagement and corporate responsibility. The company's financial performance in 2024 indicates a positive trajectory, supported by strategic initiatives aimed at enhancing customer experience and operational efficiency.

How Zions Bancorporation, National Association (ZION) Works

Financial Overview

As of June 30, 2024, Zions Bancorporation reported total assets of $87.6 billion, an increase from $87.2 billion at December 31, 2023. The bank's total deposits amounted to $73.8 billion, down 2% from $74.9 billion at the end of 2023.

Net Interest Income and Margin

For the second quarter of 2024, Zions Bancorporation achieved a net interest income of $597 million, compared to $591 million in the same quarter of 2023. The net interest margin (NIM) improved to 2.98% from 2.92% year-over-year.

Loan and Deposit Trends

Total loans and leases increased by $1.5 billion, or 3%, to $58.4 billion from $56.9 billion a year prior. Customer deposits (excluding brokered deposits) rose by $3.6 billion, or 5%, to $69.5 billion.

Noninterest Income

Customer-related noninterest income decreased by $8 million, or 5%, primarily due to lower capital markets fees. Total noninterest income for the quarter stood at $179 million, down from $189 million in Q2 2023.

Credit Quality Metrics

Zions Bancorporation reported net loan and lease charge-offs of $15 million, or 0.10% of average loans, as of June 30, 2024. The classified loans totaled $1.3 billion, representing 2.16% of total loans and leases.

Operational Efficiency

The efficiency ratio for the second quarter of 2024 was 64.5%, an improvement from 67.9% in the previous year. Noninterest expenses remained stable at $509 million.

Liquidity and Funding

Zions Bancorporation's total available liquidity was $40.3 billion as of June 30, 2024. The ratio of available liquidity to uninsured deposits was 125%, reflecting a strong liquidity position.

Investment Securities

Zions Bancorporation held total investment securities valued at $19.6 billion as of June 30, 2024, compared to $20.7 billion at the end of 2023. The bank's held-to-maturity securities amounted to $10.1 billion.

Credit Ratings

As of July 31, 2024, Zions Bancorporation maintained investment-grade ratings from major credit agencies, which positively influence its borrowing costs and access to funding markets.

Conclusion

The financial metrics and operational strategies of Zions Bancorporation indicate a solid performance in the first half of 2024, with improvements in net interest margin, growth in loans, and a robust liquidity position.

How Zions Bancorporation, National Association (ZION) Makes Money

Net Interest Income

Zions Bancorporation generates a significant portion of its revenue through net interest income. For the second quarter of 2024, the net interest income was $597 million, an increase of $6 million or 1% from $591 million in the same period of 2023. The net interest margin (NIM) stood at 2.98%, compared to 2.92% in the prior year.

Loans and Leases

The company reported total loans and leases of $58.4 billion as of June 30, 2024, an increase of $1.5 billion or 3% compared to $57.8 billion in the previous year. The increase was primarily driven by growth in the consumer 1-4 family residential mortgage and the term commercial real estate loan portfolios.

Noninterest Income

Noninterest income contributed $179 million in Q2 2024, a decrease from $189 million in Q2 2023. This decline was primarily due to lower customer-related noninterest income, which fell by $8 million, or 5%.

Customer Deposits

Total customer deposits decreased by $1.2 billion or 2% to $73.8 billion as of June 30, 2024, compared to $74.9 billion at the end of 2023. However, customer deposits excluding brokered deposits increased by $3.6 billion or 5% to $69.5 billion.

Expense Management

Noninterest expenses for the second quarter of 2024 were stable at $509 million, compared to $508 million in the prior year. Salaries and employee benefits accounted for a significant portion of these expenses, totaling $318 million.

Provision for Credit Losses

The provision for credit losses was $5 million for Q2 2024, significantly lower than $46 million in Q2 2023. This reflects improved credit quality and lower net charge-offs.

Conclusion on Financial Performance

In summary, Zions Bancorporation's financial performance in 2024 reflects a stable growth in net interest income, improvements in loan portfolios, and effective expense management, despite challenges in noninterest income.