Nasdaq:ZION
ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/
A regionally focused bank serving the western United States with strong deposit franchises and growing net interest margins.
Key Metrics
Investment Thesis
Bull Case
Zions offers an attractive entry point for value investors given its consistent revenue growth trajectory from $614M in 2022 to $662M in 2025 and robust net income expansion. The bank's strong deposit franchise in the western US provides a stable funding base that can support loan growth and fee income as interest rates stabilize. Management has returned significant capital to shareholders through dividends totaling $267M and share repurchases of $41M, signaling confidence in future earnings power.
Bear Case
Accumulated other comprehensive losses of $1.94B and a retained earnings deficit of $7.33B suggest historical volatility or impairment charges that may weigh on equity value. The company faces substantial cash outflows from financing activities including $2.59B in other financing flows, which could limit flexibility for strategic acquisitions or organic growth initiatives. Heavy reliance on regional commercial real estate exposure increases vulnerability to local economic downturns that could trigger higher loan defaults.
About ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/
Zions Bancorporation provides comprehensive banking services including consumer, commercial, and wealth management across Utah, Idaho, Nevada, Arizona, Colorado, Oregon, and California. The company leverages its deep community roots to serve individuals, businesses, and institutions with a diverse portfolio of loans and deposits. Key revenue streams derive from net interest income on loans and deposits, fee-based services, and investment securities holdings.
Analysis
Management Discussion
Zions Bancorporation reported a net profit of $899.0M in 2025, reflecting a recovery from the 2023 dip to $680.0M and steady growth from prior years. Operating profit reached $1.18B while cash flow from operations strengthened to $1.07B, indicating improved core banking efficiency. The company maintained solid liquidity with ending cash of $683.0M despite significant financing outflows of $1.78B driven by dividend payments and share repurchases.
Industry Overview
The US banking sector is currently navigating a post-high-interest-rate environment where net interest margins are stabilizing but competition for deposits remains intense. Mid-sized regional banks like Zions are under pressure from large national competitors and fintech disruptors seeking to capture fee-based revenue streams in wealth management and digital lending. Regulatory scrutiny on capital adequacy and consumer protection continues to evolve, requiring ongoing investments in compliance technology and operational resilience.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $614.0M | $620.0M | $639.0M | $662.0M |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $614.0M | $620.0M | $639.0M | $662.0M |
| Operating Expenses | $-538.0M | $-266.0M | $-373.0M | $-513.0M |
| Operating Income | $1.15B | $886.0M | $1.01B | $1.18B |
| Stock-Based Comp | $30.0M | $33.0M | $33.0M | $35.0M |
| D&A | $110.0M | $140.0M | $124.0M | $116.0M |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Expense | $185.0M | $1.51B | — | — |
| Pre-Tax Income | $1.15B | $886.0M | $1.01B | $1.18B |
| Income Tax | $245.0M | $206.0M | $228.0M | $276.0M |
| Continuing Ops | $907.0M | $680.0M | $784.0M | $899.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $907.0M | $680.0M | $784.0M | $899.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $907.0M | $680.0M | $784.0M | $899.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Intangibles | $38.0M | $32.0M | $25.0M | $31.0M |
| Goodwill | $1.03B | $1.03B | $1.03B | $1.06B |
| Operating Leases | $173.0M | $172.0M | $188.0M | $207.0M |
| Total Assets | $89.55B | $87.20B | $88.78B | $88.99B |
| Total Liabilities | $84.65B | $81.51B | $82.65B | $81.81B |
| Shareholders' Equity | $4.89B | $5.69B | $6.12B | $7.18B |
| Paid-In Capital | $1.75B | $1.73B | $1.74B | $1.73B |
| Retained Earnings | $5.81B | $6.21B | $6.70B | $7.33B |
| AOCI | $-3.11B | $-2.69B | $-2.38B | $-1.94B |
| Total L&E | $89.55B | $87.20B | $88.78B | $88.99B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $907.0M | $680.0M | $784.0M | $899.0M |
| Non-Cash Adjustments | $10.74B | $-2.65B | $-727.0M | $1.56B |
| Working Capital Changes | $-10.17B | $2.86B | $1.09B | $-1.39B |
| Cash from Operations | $1.47B | $885.0M | $1.15B | $1.07B |
| Capital Expenditures | $190.0M | $113.0M | $97.0M | $121.0M |
| Cash from Investing | $1.41B | $2.37B | $-1.64B | $738.0M |
| Debt Issuances | — | — | $496.0M | $498.0M |
| Debt Repayments | $290.0M | $128.0M | $88.0M | $0 |
| Share Buybacks | $202.0M | $51.0M | $36.0M | $41.0M |
| Dividends Paid | $269.0M | $282.0M | $289.0M | $267.0M |
| Cash from Financing | $-2.81B | $-3.20B | $427.0M | $-1.78B |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $62.0M | $59.0M | $-65.0M | $32.0M |
| Beginning Cash | $595.0M | $657.0M | $716.0M | $651.0M |
| Ending Cash | $657.0M | $716.0M | $651.0M | $683.0M |
Frequently Asked Questions
How does ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/ make money?
Consumer Banking offering checking, savings, mortgages, and auto loans to individuals and families; Commercial Banking providing business lending, treasury management, and merchant services for small to mid-sized enterprises; Wealth Management delivering investment advisory, retirement planning, and estate services; Investment Securities managing a portfolio of marketable securities to support liquidity and interest rate strategy.
What are the main risks for ZION?
Elevated credit losses from a concentrated commercial real estate loan portfolio in growth markets; Rising funding costs compressing net interest margins as the Federal Reserve maintains higher rates; Regulatory changes increasing compliance costs and capital requirements for mid-sized banks; Macroeconomic slowdowns leading to deposit outflows or reduced loan demand.
What is ZION's competitive advantage?
Deep community presence in the western US fostering high customer loyalty and stable deposit franchises; Strong capitalization ratios providing resilience during economic downturns and regulatory stress; Diversified revenue streams reducing reliance on any single product line or geographic region.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.