Zions Bancorporation, National Association

Company Overview

Business Model: Zions Bancorporation, National Association is a bank headquartered in Salt Lake City, Utah, providing a wide range of banking products and related services primarily across 11 Western states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The Bank operates through seven separately managed, geographically defined bank divisions (affiliates)—Zions Bank, California Bank & Trust, Amegy Bank, National Bank of Arizona, Nevada State Bank, Vectra Bank Colorado, and The Commerce Bank of Washington—each operating under its own local brand and management team. This model emphasizes local authority and accountability, including locally informed pricing and product customization. An enterprise-level "Other" segment supports these affiliates by providing governance, risk oversight, capital allocation, strategic objectives, centralized technology infrastructure, and back-office operations. The Bank's product and service portfolio includes commercial and small business banking, capital markets and investment banking, commercial real estate lending, retail banking, and wealth management solutions.

Market Position: Zions Bancorporation, National Association serves over one million customers through 407 branches and various online, mobile, and digital channels, supported by 9,195 full-time equivalent employees as of December 31, 2025. The Bank's competitive strengths are rooted in its service quality, deep understanding of local communities, extensive branch and office network, broad product and service offerings, and strong customer relationships. It operates in a highly competitive environment, facing traditional commercial banks, credit unions (particularly prominent in Utah and Idaho), financial technology companies, private credit/debt funds, and other non-traditional financial institutions.

Recent Strategic Developments:

• Acquisition: In late March 2025, Zions Bancorporation, National Association acquired four FirstBank Coachella Valley, California branches, including approximately $630 million in deposits and $420 million in consumer and commercial loans.
• Technology Modernization: In July 2024, the Bank completed the final phase of a multi-year project to replace its core loan and deposit banking systems, transitioning substantially all commercial, commercial real estate, and non-mortgage consumer loans, as well as deposit accounts, to a modern, integrated core platform. Ongoing investments are being made in additional lending, deposit, and customer-focused technology initiatives.
• Capital Actions: In August 2025, the Bank issued $500 million in 4.70% Fixed-to-Floating Senior Notes. In December 2024, it completed the full redemption of all outstanding shares of Series G, I, and J preferred stock. In January 2026, the Bank publicly announced a plan to repurchase up to $75 million of common shares outstanding during the first quarter of 2026.
• Regulatory Landscape: In December 2025, the Office of the Comptroller of the Currency proposed raising the asset threshold for its "Heightened Standards" from $50 billion to $700 billion, which, if adopted, would exempt the Bank from these prescriptive requirements. In October 2024, the Consumer Financial Protection Bureau issued a final rule on data access requirements under Section 1033 of the Dodd-Frank Act, with a compliance deadline of April 1, 2027, for a bank of the Bank's size.

Geographic Footprint: Zions Bancorporation, National Association's primary operations span 11 Western states. As of December 31, 2025, its affiliate banks held significant market positions:

• Zions Bank: 92 branches in Utah, 25 in Idaho, 1 in Wyoming. Ranked 2nd largest full-service commercial bank in Utah and 5th largest in Idaho by domestic deposit market share.
• California Bank & Trust: 77 branches in California. Ranked 13th largest full-service commercial bank in California by domestic deposit market share.
• Amegy Bank: 76 branches in Texas. Ranked 8th largest full-service commercial bank in Texas by domestic deposit market share.
• National Bank of Arizona: 56 branches in Arizona. Ranked 5th largest full-service commercial bank in Arizona by domestic deposit market share.
• Nevada State Bank: 43 branches in Nevada. Ranked 5th largest full-service commercial bank in Nevada by domestic deposit market share.
• Vectra Bank Colorado: 33 branches in Colorado, 1 in New Mexico. Ranked 15th largest full-service commercial bank in Colorado by domestic deposit market share.
• The Commerce Bank of Washington: 2 branches in Washington, 1 in Oregon.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: Not directly calculable from provided data.
• Operating Margin: Not directly calculable from provided data.
• Net Margin: 26.56% (Net Income / Total Net Revenue)
• Return on Average Assets: 1.00% (2025) vs. 0.88% (2024)
• Return on Average Common Equity: 13.7% (2025) vs. 13.1% (2024)
• Return on Average Tangible Common Equity: 16.6% (2025) vs. 16.2% (2024)
• Net Interest Margin: 3.21% (2025) vs. 3.00% (2024)
• Efficiency Ratio: 62.6% (2025) vs. 64.2% (2024)

Investment in Growth:

• R&D Expenditure: Total technology spend was $510 million in 2025, an increase of 9% from the prior year, driven by higher capitalized technology investments associated with lending and customer-focused technology initiatives.
• Capital Expenditures: Purchases of premises and equipment totaled $121 million in 2025.
• Strategic Investments: The Small Business Investment Company investment portfolio increased by $67 million in 2025, largely due to new investments and valuation adjustments.

Business Segment Analysis

Zions Bank

Financial Performance:

• Revenue: Net interest income of $738 million (+7% YoY); Noninterest income of $190 million (+2% YoY).
• Operating Margin: Income before income taxes of $344 million (+9% YoY).
• Key Growth Drivers: Growth in net interest income, supported by stable noninterest income. Total loans increased 1% to $15,044 million. Product Portfolio: Offers commercial, commercial real estate, and consumer loans, alongside other banking services. Market Dynamics: Holds the position of the second largest full-service commercial bank in Utah and the fifth largest in Idaho by domestic deposit market share.

California Bank & Trust

Financial Performance:

• Revenue: Net interest income of $647 million (+11% YoY); Noninterest income of $126 million (+4% YoY).
• Operating Margin: Income before income taxes of $287 million (+10% YoY).
• Key Growth Drivers: Strong growth in both net interest income and noninterest income. Total loans increased 6% to $15,441 million, and total deposits increased 9% to $15,868 million, partly due to the acquisition of four branches in Coachella Valley, California. Product Portfolio: Provides commercial, commercial real estate, and consumer loans, among other banking services. Market Dynamics: Ranks as the 13th largest full-service commercial bank in California by domestic deposit market share.

Amegy Bank

Financial Performance:

• Revenue: Net interest income of $565 million (+14% YoY); Noninterest income of $189 million (+8% YoY).
• Operating Margin: Income before income taxes of $281 million (+46% YoY).
• Key Growth Drivers: Significant growth in net interest income and noninterest income. Total loans increased 4% to $14,465 million. Product Portfolio: Offers commercial, commercial real estate, and consumer loans, in addition to other banking services. Market Dynamics: Ranks as the eighth largest full-service commercial bank in Texas by domestic deposit market share.

National Bank of Arizona

Financial Performance:

• Revenue: Net interest income of $262 million (+7% YoY); Noninterest income of $44 million (+2% YoY).
• Operating Margin: Income before income taxes of $125 million (+67% YoY).
• Key Growth Drivers: Growth in net interest income and noninterest income. Total deposits increased 1% to $6,968 million. Product Portfolio: Provides commercial, commercial real estate, and consumer loans, along with other banking services. Market Dynamics: Ranks as the fifth largest full-service commercial bank in Arizona by domestic deposit market share.

Nevada State Bank

Financial Performance:

• Revenue: Net interest income of $213 million (+8% YoY); Noninterest income of $52 million (0% YoY).
• Operating Margin: Income before income taxes of $93 million (+12% YoY).
• Key Growth Drivers: Growth in net interest income. Total deposits increased 2% to $7,236 million. Product Portfolio: Offers commercial, commercial real estate, and consumer loans, and other banking services. Market Dynamics: Ranks as the fifth largest full-service commercial bank in Nevada by domestic deposit market share.

Vectra Bank Colorado

Financial Performance:

• Revenue: Net interest income of $143 million (-3% YoY); Noninterest income of $36 million (+24% YoY).
• Operating Margin: Income before income taxes of $33 million (-11% YoY).
• Key Growth Drivers: Strong noninterest income growth, partially offset by a decline in net interest income. Total loans decreased 6% to $3,652 million. Product Portfolio: Provides commercial, commercial real estate, and consumer loans, among other banking services. Market Dynamics: Ranks as the 15th largest full-service commercial bank in Colorado by domestic deposit market share.

The Commerce Bank of Washington

Financial Performance:

• Revenue: Net interest income of $71 million (+13% YoY); Noninterest income of $8 million (0% YoY).
• Operating Margin: Income before income taxes of $40 million (+38% YoY).
• Key Growth Drivers: Growth in net interest income. Total loans increased 8% to $2,098 million. Product Portfolio: Offers commercial, commercial real estate, and consumer loans, and other banking services. Market Dynamics: Operates in Washington and Oregon.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: Zions Bancorporation, National Association repurchased $41 million of common shares (773,244 shares) in 2025. A plan to repurchase up to $75 million of common shares outstanding during the first quarter of 2026 was publicly announced in January 2026.
• Dividend Payments: Common dividends paid totaled $263 million, or $1.76 per common share, in 2025. A quarterly dividend of $0.45 per common share was declared in January 2026. Preferred stock dividends totaled $4 million in 2025, a decrease from $41 million in 2024 due to the redemption of Series G, I, and J preferred stock.
• Future Capital Return Commitments: The Bank has authorized a $75 million common share repurchase plan for the first quarter of 2026.

Balance Sheet Position:

• Cash and Equivalents: $683 million at December 31, 2025.
• Total Debt: Total debt, including long-term debt and federal funds and other short-term borrowings, was $4,576 million at December 31, 2025.
• Credit Rating: All credit rating agencies currently rate the Bank's debt at an investment-grade level. In November 2025, S&P upgraded its rating outlook on the Bank to "Stable" from "Negative."
• Debt Maturity Profile: Long-term debt of $1,472 million at December 31, 2025, includes $499 million due in 2028, $466 million due in 2029, and $507 million due after 2030. Short-term borrowings generally have maturities of less than 30 days.

Cash Flow Generation:

• Operating Cash Flow: Net cash provided by operating activities was $1,073 million in 2025.

Operational Excellence

Production & Service Model: Zions Bancorporation, National Association operates through a decentralized affiliate model, emphasizing local authority and customization to enhance customer satisfaction and profitability. This is supported by an enterprise-level "Other" segment that centralizes governance, risk oversight, capital allocation, strategic objectives, technology infrastructure, and back-office operations. A multi-year project to replace core loan and deposit banking systems was completed in July 2024, migrating most commercial, commercial real estate, and non-mortgage consumer loans and deposit accounts to a modern, integrated platform. The Bank continues to invest in technology initiatives to modernize systems, improve customer experiences, and enhance operational performance.

Supply Chain Architecture: Key Suppliers & Partners: The Bank relies on various external suppliers for operational activities. Its supply chain risk management framework includes cybersecurity-focused assessments of third-party vendors, continuous monitoring using real-time security scoring, threat intelligence, and financial/geopolitical risk analysis. Supplier contracts include robust cybersecurity provisions.

Facility Network:

• Manufacturing: Not applicable as the Bank is a financial services provider.
• Research & Development: The Bank invests in technology initiatives to improve products and services, increase operational efficiency, and maintain competitiveness.
• Distribution: The Bank operates 407 branches (278 owned, 129 leased) and utilizes online, mobile, and digital channels. Its corporate headquarters in Salt Lake City, Utah, is leased. The Bank has also developed a LEED Platinum-certified technology campus and other LEED-certified facilities.

Operational Metrics:

• Full-time equivalent employees: 9,195 at December 31, 2025, a decrease of approximately 2% year-over-year.
• Efficiency Ratio: Improved to 62.6% in 2025 from 64.2% in 2024, reflecting positive operating leverage.
• Total Technology Spend: Increased by 9% to $510 million in 2025, driven by higher capitalized technology investments.
• Core System Replacement Project: Capitalized costs for Phase 1, Phase 2, and Phase 3 were $100 million, $150 million, and $200 million, with scheduled amortization ending in Q2 2027, Q1 2029, and Q2 2033, respectively.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels: Zions Bancorporation, National Association employs a multi-channel approach, leveraging its network of 407 branches, direct sales efforts for commercial and small business clients, and a growing presence across digital platforms including online and mobile banking. The Bank also offers correspondent banking services.

Customer Portfolio: Enterprise Customers: The Bank serves a diverse portfolio of over one million customers, with a primary focus on small- and medium-sized businesses. Its commercial lending portfolio is geographically diversified across its Western U.S. footprint. Customer Concentration: Loans to nondepository financial institutions totaled approximately $2.0 billion at December 31, 2025, representing 6.3% of total commercial loans and 3.3% of total loans. Geographic Revenue Distribution: The Bank's lending portfolios exhibit significant geographic concentration within its 11-state footprint. As of December 31, 2025:

• Commercial Lending: Texas (25.2%), California (20.0%), Utah/Idaho (20.4%).
• Commercial Real Estate Lending: California (26.5%), Texas (19.2%), Utah/Idaho (17.7%).
• Consumer Lending: California (23.3%), Texas (23.1%), Utah/Idaho (22.3%).

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The financial services industry is characterized by intense competition and rapid technological transformation. This includes the continuous introduction of new technology-driven products and services such as mobile payment solutions, digital wallets, and digital assets. There is growing experimentation with advanced technologies like artificial intelligence, quantum computing, tokenized deposits, blockchain, stablecoins, and central bank digital currencies, which have the potential to fundamentally reshape the landscape. Industry consolidation, through mergers of smaller banks or combinations of banks and non-bank entities, further intensifies competitive pressures.

Competitive Positioning Matrix:

| Competitive Factor | Company Position
| | Zions Bancorporation, N.A. | Leading/Competitive | Deep understanding of local communities, extensive branch network, broad product/service offerings, strong customer relationships.
| ZIONS BANCORPORATION, NATIONAL ASSOCIATION | | ZIONS BANCORPORATION, NATIONAL ASSOCIATION