Zions Bancorporation, National Association (ZION) Bundle
A Brief History of Zions Bancorporation
Founded in 1873, Zions Bancorporation has grown from a local bank into a major financial services institution. As of 2024, Zions operates in multiple states through a variety of subsidiaries, including Zions Bank, California Bank & Trust, and Amegy Bank.
Financial Performance Overview
As of September 30, 2024, Zions Bancorporation reported total assets of $87.0 billion, a slight decrease from $87.2 billion at the end of 2023. Total loans and leases reached $58.9 billion, an increase of $1.1 billion or 2% from the previous year. The loan portfolio is predominantly composed of commercial and industrial loans, which represent 29% of the total portfolio.
| Financial Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $87.0 billion | $87.2 billion |
| Total Loans and Leases | $58.9 billion | $57.8 billion |
| Total Deposits | $75.7 billion | $75.0 billion |
| Net Interest Income | $620 million | $585 million |
| Net Income | $214 million | $175 million |
Loan and Deposit Composition
The composition of Zions' loan portfolio as of September 30, 2024, is as follows:
| Loan Type | Amount (in millions) | % of Total Loans |
|---|---|---|
| Commercial and Industrial | $16,757 | 28.4% |
| Consumer Loans | $14,616 | 24.8% |
| Commercial Real Estate | $30,785 | 52.2% |
As for deposits, the total deposits increased by $757 million, primarily due to a rise in interest-bearing deposits. The deposit portfolio is composed of noninterest-bearing demand deposits (33.0%), savings and money market accounts (51.8%), and time deposits (8.3%).
Recent Developments
In July 2024, Zions Bancorporation completed a significant upgrade to its core banking systems, transitioning to a more modern and integrated platform. This investment aims to enhance customer experience and operational efficiency.
Credit Quality Metrics
As of September 30, 2024, Zions reported nonperforming assets totaling $368 million, representing a ratio of 0.62% of net loans and leases. The provision for credit losses was recorded at $13 million for the quarter.
| Credit Quality Metric | Value |
|---|---|
| Nonperforming Assets | $368 million |
| Nonperforming Assets Ratio | 0.62% |
| Provision for Credit Losses | $13 million |
Zions Bancorporation continues to adapt to market conditions, demonstrating resilience through strategic investments and a focus on credit quality management.
A Who Owns Zions Bancorporation, National Association (ZION)
Major Shareholders
As of September 30, 2024, Zions Bancorporation, National Association (ZION) maintains a diverse ownership structure. The following table outlines the major institutional and individual shareholders:
| Shareholder Type | Number of Shares (in millions) | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 12.4 | 8.4% |
| Vanguard Group, Inc. | 11.2 | 7.6% |
| State Street Corporation | 8.5 | 5.8% |
| Wellington Management Co. LLP | 7.1 | 4.8% |
| Other Institutional Investors | 41.4 | 28.0% |
| Individual and Retail Investors | 66.1 | 44.8% |
Insider Ownership
Insider ownership plays a significant role in the governance of Zions Bancorporation. As of September 30, 2024, insiders hold approximately 1.5% of the total shares outstanding. The following table summarizes insider ownership:
| Insider Name | Position | Shares Owned (in thousands) |
|---|---|---|
| Harris H. Simmons | Chairman and CEO | 1,250 |
| Scott J. McLean | President and COO | 600 |
| Other Executives | - | 500 |
Recent Shareholder Actions
During the third quarter of 2024, Zions Bancorporation repurchased approximately 893,000 shares of common stock, with a total expenditure of around $35 million. The company also declared a common stock dividend of $0.41 per share, amounting to $61 million paid to shareholders.
Market Performance
As of September 30, 2024, Zions Bancorporation's stock price was $49.60, reflecting a year-to-date increase of 12.5%. The market capitalization stood at approximately $7.3 billion.
Financial Overview
The bank reported total assets of $87 billion and total equity of $6.4 billion as of September 30, 2024. The following table provides a snapshot of key financial metrics:
| Financial Metric | Amount |
|---|---|
| Total Assets | $87 billion |
| Total Equity | $6.4 billion |
| Net Income (Q3 2024) | $214 million |
| Earnings Per Share (EPS) | $1.37 |
| Return on Equity (ROE) | 14.1% |
Conclusion on Ownership Structure
The ownership of Zions Bancorporation is characterized by a mix of institutional and retail investors, with significant insider ownership contributing to the governance of the company. The financial performance indicators suggest a stable and growing institution in the regional banking sector.
Zions Bancorporation, National Association (ZION) Mission Statement
Mission Statement Overview
Zions Bancorporation, National Association, emphasizes its commitment to providing superior financial services while fostering strong relationships with customers and communities. The mission statement reflects a dedication to integrity, innovation, and excellence in service delivery.
Financial Performance Metrics
As of the third quarter of 2024, Zions Bancorporation reported significant financial metrics that align with its mission of growth and customer service:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Earnings Applicable to Common Shareholders (millions) | $568 | $554 | 2.5% |
| Diluted Earnings Per Share (EPS) | $1.37 | $1.13 | 21.2% |
| Net Interest Income (millions) | $620 | $585 | 6.0% |
| Provision for Credit Losses (millions) | $13 | $41 | -68.3% |
| Total Deposits (millions) | $75,718 | $74,961 | 1.0% |
| Total Loans and Leases (millions) | $58,884 | $57,779 | 1.9% |
Capital Management
In line with its mission, Zions Bancorporation maintains robust capital ratios under Basel III requirements:
| Capital Ratio | Q3 2024 | Q4 2023 |
|---|---|---|
| Common Equity Tier 1 Capital Ratio | 10.7% | 10.3% |
| Tier 1 Risk-Based Ratio | 11.4% | 10.9% |
| Total Risk-Based Ratio | 13.2% | 12.8% |
Customer Engagement and Innovation
Zions Bancorporation strives to enhance customer engagement through innovation and technology. The transition to a modern, integrated core system was completed in July 2024, allowing for improved customer service and operational efficiencies.
Dividend Payments
Reflecting its commitment to shareholder value, Zions Bancorporation declared dividends on common stock:
| Dividend Type | Amount (per share) | Payment Date |
|---|---|---|
| Quarterly Dividend | $0.41 | November 21, 2024 |
Risk Management
Risk management is integral to Zions Bancorporation's operations, focusing on credit risk, market risk, and operational risk. The bank employs various strategies to mitigate these risks, ensuring financial stability and adherence to regulatory standards.
Credit Quality Metrics
As of September 30, 2024, Zions reported the following credit quality metrics:
| Metric | Q3 2024 | Q4 2023 |
|---|---|---|
| Nonperforming Assets (millions) | $368 | $228 |
| Classified Loans (millions) | $2,093 | $825 |
| Ratio of Nonperforming Assets to Total Loans | 0.62% | 0.39% |
Conclusion
Through its mission, Zions Bancorporation continues to enhance its financial performance, maintain robust capital management, and focus on customer engagement and risk management.
How Zions Bancorporation, National Association (ZION) Works
Financial Performance Overview
In the third quarter of 2024, Zions Bancorporation reported a diluted earnings per share (EPS) of $1.37, up from $1.13 in the same quarter of 2023. The net interest income increased by $35 million, or 6%, compared to the prior year period. The net interest margin (NIM) improved to 3.03%, up from 2.93%.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Diluted EPS | $1.37 | $1.13 | +21.2% |
| Net Interest Income | $620 million | $585 million | +6% |
| Net Interest Margin | 3.03% | 2.93% | +10 bps |
Loan and Deposit Growth
As of September 30, 2024, total loans and leases increased by $2.0 billion, or 3%, reaching $58.9 billion. The growth was primarily driven by the consumer 1-4 family residential mortgage and commercial and industrial loan portfolios. Total deposits rose by $319 million, with customer deposits (excluding brokered deposits) totaling $70.5 billion.
| Loan and Deposit Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Loans and Leases | $58.9 billion | $57.8 billion | +2% |
| Total Deposits | $75.7 billion | $74.9 billion | +1% |
| Customer Deposits (excluding brokered) | $70.5 billion | $68.8 billion | +2% |
Noninterest Income and Expenses
Customer-related noninterest income increased by $4 million, or 3%, primarily due to higher capital markets fees and commercial account fees. Noninterest expense rose by $6 million, or 1%, largely driven by increased salaries and employee benefits.
| Noninterest Income and Expense Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Customer-related Noninterest Income | $161 million | $157 million | +3% |
| Noninterest Expense | $502 million | $496 million | +1% |
Credit Quality Metrics
Nonperforming assets totaled $368 million, or 0.62% of total loans and leases, compared to $219 million, or 0.38% in the previous year. Classified loans increased to $2.1 billion, or 3.55% of total loans and leases.
| Credit Quality Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Nonperforming Assets | $368 million | $219 million | +67.9% |
| Classified Loans | $2.1 billion | $769 million | +172.5% |
| Net Loan Charge-Offs | $3 million | $14 million | -78.6% |
Capital and Liquidity Position
At September 30, 2024, Zions Bancorporation's total shareholders' equity was $6.4 billion, an increase of 12% from the previous year. The common equity tier 1 (CET1) capital ratio was 10.7%, exceeding the minimum regulatory requirements.
| Capital and Liquidity Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Shareholders' Equity | $6.4 billion | $5.7 billion | +12% |
| CET1 Capital Ratio | 10.7% | 10.2% | +50 bps |
| Total Available Liquidity | $43.1 billion | $40.6 billion | +6.2% |
Investment Portfolio
Zions Bancorporation’s investment securities with a carrying value of $18.6 billion were pledged as collateral for potential borrowings as of September 30, 2024. The bank holds a diversified portfolio that includes significant investments in government-backed securities.
| Investment Portfolio Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Investment Securities | $18.6 billion | $20.5 billion | -9.3% |
| Pledged Securities | $8.9 billion | $9.5 billion | -6.3% |
Operational Efficiency
The efficiency ratio, a measure of operating expenses relative to revenue, improved to 61.1% in Q3 2024 compared to 62.0% in Q3 2023, indicating better cost management in generating revenue.
| Efficiency Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Efficiency Ratio | 61.1% | 62.0% | -90 bps |
How Zions Bancorporation, National Association (ZION) Makes Money
Net Interest Income
Net interest income is a significant revenue source for Zions Bancorporation, accounting for approximately 78% of net revenue in the third quarter of 2024. The company reported a net interest income of $620 million for the quarter, which reflects a 6% increase from $585 million in the same quarter of 2023. The net interest margin (NIM) improved to 3.03% from 2.93%.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Interest Income | $620 million | $585 million | 6% |
| Net Interest Margin | 3.03% | 2.93% | 10% |
Interest Income Sources
Interest income is primarily derived from loans and investments. Interest and fees from loans reached $899 million in Q3 2024, up from $831 million in Q3 2023. The yield on average loans increased to 6.15% in Q3 2024, compared to 5.84% in Q3 2023.
| Source | Q3 2024 ($ million) | Q3 2023 ($ million) |
|---|---|---|
| Interest and Fees on Loans | $899 | $831 |
| Interest on Money Market Investments | $67 | $35 |
| Interest on Securities | $138 | $144 |
Noninterest Income
Noninterest income represents revenues from various fees and services. Zions reported total noninterest income of $172 million in Q3 2024, a decrease of 4% from $180 million in Q3 2023. Key components included:
| Category | Q3 2024 ($ million) | Q3 2023 ($ million) |
|---|---|---|
| Commercial Account Fees | $46 | $43 |
| Capital Markets Fees | $28 | $18 |
| Card Fees | $24 | $26 |
| Retail and Business Banking Fees | $18 | $17 |
Loan Portfolio Growth
Zions Bancorporation's loan portfolio grew by 3% to $58.9 billion as of September 30, 2024. This growth was driven by increases in consumer and commercial real estate loans. The total loans and leases increased by $2 billion from the previous quarter.
| Loan Type | Amount ($ billion) | Change (%) |
|---|---|---|
| Commercial Loans | $30.6 | 3% |
| Commercial Real Estate | $13.5 | 5% |
| Consumer Loans | $14.2 | 6% |
Deposit Growth
Customer deposits (excluding brokered deposits) increased by $1.7 billion, or 2%, to $70.5 billion as of September 30, 2024. The average cost of total deposits rose to 2.14% from 1.92% in the prior year.
| Deposit Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Deposits | $70.5 billion | $68.8 billion |
| Average Cost of Total Deposits | 2.14% | 1.92% |
Expense Management
Noninterest expenses increased by 1% to $502 million in Q3 2024, driven mainly by salary increases and technology investments. Noninterest expenses as a percentage of total revenue were around 45%.
| Expense Category | Q3 2024 ($ million) | Q3 2023 ($ million) |
|---|---|---|
| Salaries and Employee Benefits | $317 | $311 |
| Technology and Telecom | $66 | $62 |
| Other Expenses | $119 | $127 |
Investment Securities
As of September 30, 2024, Zions reported total investment securities valued at $19.4 billion, a decrease of 9% from the previous year due to principal reductions.
| Type of Securities | Value ($ billion) | Change (%) |
|---|---|---|
| Available-for-Sale | $9.7 | - |
| Held-to-Maturity | $10.1 | - |
Zions Bancorporation, National Association (ZION) DCF Excel Template
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Updated on 16 Nov 2024
Resources:
- Zions Bancorporation, National Association (ZION) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Zions Bancorporation, National Association (ZION)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Zions Bancorporation, National Association (ZION)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.