Document


FIRST QUARTER HIGHLIGHTS²

Net Interest Income and NIM	•	Net interest income was $545 million, compared with $548 million
	•	NIM was 2.86%, compared with 3.41%, and was significantly impacted by lower interest rates and higher average cash balances of $7.8 billion, compared with $2.0 billion

Operating Performance	•	Pre-provision net revenue ("PPNR") was $287 million, up 2%, and adjusted PPNR³ was $253 million, down 15%
	•	Noninterest expense was $435 million, up 7%, and adjusted noninterest expense³ was $440 million, up 8%, due to increases in salaries and employee benefits (largely long-term compensation) and PPP-related professional and legal services
	•	The efficiency ratio³ was 63.5%, compared with 57.7%

Loans and Credit Quality	•	Net loans and leases were $53.5 billion, up $3.5 billion, or 7%, and included PPP loans of $6.5 billion
	•	About 24,000 PPP Round 2021 loans were originated, totaling $2.6 billion
	•	Nonperforming assets were $327 million, or 0.7%, of loans (ex-PPP), compared with $280 million, or 0.6%, of loans
	•	The provision for credit losses was a negative $132 million, compared with a positive $258 million
	•	The allowance for credit losses was 1.5% of loans (ex-PPP), compared with 1.6% of loans

Capital	•	The CET1 capital ratio was 11.2%, compared with 10.0%

Notable items	•	About 15,000 PPP loans were forgiven by the SBA, totaling $1.6 billion, which contributed $31 million of interest income through accelerated recognition of net unamortized deferred fees
	•	Deposits were $73.9 billion, up $16.3 billion, or 28%, resulting in a loan-to-deposit ratio of 72%. Deposit growth has been impacted by government stimulus programs
	•	Gain on sale of remaining Farmer Mac Class C stock of $11 million, or $0.05 per share 4
	•	Positive credit valuation adjustment of $18 million, or $0.08 per share,4 on client-related interest rate swaps


CEO COMMENTARY

Harris H. Simmons, Chairman and CEO of Zions Bancorporation, commented, “Our first quarter results were strong, reflecting an improving credit environment and outlook, which resulted in minimal net charge-offs and a substantial reversal of loan loss provisions made in prior quarters as the pandemic took hold.” Mr. Simmons continued, “During the quarter, we assisted more than 24,000 customers in obtaining access to $2.6 billion of governmental relief funds in the form of PPP loans, bringing the total amount of PPP loans made to small businesses over the past year to nearly $10 billion. Non-PPP loan volumes continued to experience attrition while total deposits saw robust growth, both being in large measure a result of unusually strong levels of liquidity in the economy.”



OPERATING PERFORMANCE3


Net Interest Income and Margin
										1Q21 - 4Q20				1Q21 - 1Q20
(In millions)	1Q21			4Q20			1Q20			$		%		$		%
Interest and fees on loans	$	488		$	499		$	532		$	(11)	(2)	%	$	(44)	(8)	%
Interest on money market investments	3			3			8			—		—		(5)		(63)
Interest on securities	71			69			82			2		3		(11)		(13)
Total interest income	562			571			622			(9)		(2)		(60)		(10)
Interest on deposits	9			13			51			(4)		(31)		(42)		(82)
Interest on short- and long-term borrowings	8			8			23			—		—		(15)		(65)
Total interest expense	17			21			74			(4)		(19)		(57)		(77)
Net interest income	$	545		$	550		$	548		$	(5)	(1)		$	(3)	(1)
										bps				bps
Yield on interest-earning assets1	2.95		%	3.06		%	3.87		%	(11)				(92)
Rate paid on total deposits and interest-bearing liabilities1	0.09		%	0.12		%	0.48		%	(3)				(39)
Cost of total deposits1	0.05		%	0.08		%	0.36		%	(3)				(31)
Net interest margin1	2.86		%	2.95		%	3.41		%	(9)				(55)

Net interest income decreased $3 million, or 1%, to $545 million in the first quarter of 2021, from $548 million in the first quarter of 2020. Total interest income decreased $60 million, or 10%, due to a $44 million decrease in interest and fees on loans and an $11 million decrease in interest on securities. The decrease was primarily attributable to the lower interest rate environment, as the average balance of interest-earning assets increased 20%. Interest expense decreased $57 million, or 77%, due to a $42 million decline in interest paid on deposits and a $15 million decline in interest paid on short- and long-term borrowings attributable to lower rates on both categories as well as reduced balances of borrowed funds. The decline in interest expense was also primarily due to the lower interest rate environment and partially attributable to reduced competitive pricing pressure for deposits. Additionally, strong deposit growth of $16 billion, or 28%, reduced the need for borrowed funds and was impacted by government stimulus programs.

The net interest margin compressed to 2.86% in the first quarter of 2021, compared with 3.41% in the same prior year period. The yield on average interest-earning assets was 2.95% in the first quarter of 2021, a decrease of 92 basis points, compared with the first quarter of 2020. Average money market investments, including short-term deposits held at the Federal Reserve, increased to 10.0% of average interest-earning assets in the first quarter of 2021, compared with 3.1% in the same prior year period. This increase had a significant dilutive effect on the net interest margin.

the marketplace. The yield on securities decreased 57 basis points from the same prior year period, primarily from lower yields on new investments, which were also attributable to lower benchmark interest rates. The yield on non-PPP loans originated during the first quarter of 2021 was moderately less than the yield on loans maturing or otherwise paying down. Similarly, the yield on securities purchased during the first quarter of 2021 was significantly lower than the yield on securities that paid off or paid down. These trends were consistent with those reported in recent quarters.

The annualized cost of total deposits for the first quarter of 2021 was 0.05%, compared with 0.36% for the first quarter of 2020. The rate paid on total deposits and interest-bearing liabilities was 0.09% during the first quarter of 2021, a decrease from 0.48% during the first quarter of 2020, which was primarily due to lower benchmark interest rates and strong deposit growth. Average noninterest bearing deposits as a percentage of total deposits was 47% for the first quarter of 2021, compared with 41% for the same prior year period. The deposit growth also contributed to a significant reduction in more-costly borrowed funds when compared with the first quarter of 2020.


Noninterest Income
							1Q21 - 4Q20				1Q21 - 1Q20
(In millions)	1Q21		4Q20		1Q20		$		%		$		%
Commercial account fees	$	32	$	32	$	31	$	—	—	%	$	1	3	%
Card fees	21		22		21		(1)		(5)		—		—
Retail and business banking fees	17		18		19		(1)		(6)		(2)		(11)
Loan-related fees and income	25		25		26		—		—		(1)		(4)
Capital markets and foreign exchange fees	15		19		24		(4)		(21)		(9)		(38)
Wealth management fees	12		10		11		2		20		1		9

Other customer-related fees	11		13		11		(2)		(15)		—		—
Customer-related fees	133		139		143		(6)		(4)		(10)		(7)
Fair value and nonhedge derivative income (loss)	18		8		(11)		10		NM		29		NM
Dividends and other income	7		7		8		—		—		(1)		(13)
Securities gains (losses), net	11		12		(6)		(1)		(8)		17		NM
Total noninterest income	$	169	$	166	$	134	$	3	2		$	35	26


Noninterest Expense
							1Q21 - 4Q20				1Q21 - 1Q20
(In millions)	1Q21		4Q20		1Q20		$		%		$		%
Salaries and employee benefits	$	288	$	277	$	274	$	11	4	%	$	14	5	%
Occupancy, net	33		33		33		—		—		—		—
Furniture, equipment and software, net	32		30		32		2		7		—		—
Other real estate expense, net	—		1		—		(1)		NM		—		—
Credit-related expense	6		6		4		—		—		2		50
Professional and legal services	20		19		12		1		5		8		67
Advertising	5		6		3		(1)		(17)		2		67
FDIC premiums	7		6		5		1		17		2		40
Other	44		46		45		(2)		(4)		(1)		(2)
Total noninterest expense	$	435	$	424	$	408	$	11	3		$	27	7
Adjusted noninterest expense 1	$	440	$	423	$	407	$	17	4		$	33	8

The $14 million increase in salaries and employee benefits reflected increases in long-term incentive compensation, including $7 million related to the Value Sharing Plan and share-based compensation, and $6 million of contributions to the employee 401(k) plan. The increases in these expense categories were relative to the depressed levels reported in the prior year period, when uncertainties resulting from the pandemic led to reduced accruals. The increase in salaries and employee benefits expense was partially offset by a $5 million decrease in base salaries due to lower headcount. The $8 million increase in professional and legal services was primarily related to third-party assistance associated with PPP loan forgiveness.


Asset Quality
										1Q21 - 4Q20			1Q21 - 1Q20
(In millions)	1Q21			4Q20			1Q20			bps			bps
Ratio of nonperforming assets to loans and leases and other real estate owned	0.61		%	0.69		%	0.56		%	(8)			5
Annualized ratio of net loan and lease charge-offs to average loans	0.06		%	0.11		%	0.06		%	(5)			—
Ratio of total allowance for credit losses to loans1 and leases outstanding, at period end	1.30		%	1.56		%	1.56		%	(26)			(26)
Ratio of total allowance for credit losses to loans1 and leases outstanding (excluding PPP loans), at period end	1.48		%	1.74		%	1.56		%	(26)			(8)
										$		%	$		%
Classified loans	$	1,660		$	1,641		$	881		$	19	1%	$	779	88%
Nonperforming assets	327			371			280			(44)		(12)	47		17
Net loan and lease charge-offs	8			15			7			(7)		(47)	1		14
Provision for credit losses	(132)			(67)			258			(65)		(97)	(390)		NM

We recorded a negative $132 million provision for credit losses during the first quarter of 2021, compared with a negative $67 million during the fourth quarter of 2020, and a positive $258 million for the first quarter of 2020. The allowance for credit losses (“ACL”) was $695 million at March 31, 2021, compared with $835 million at December 31, 2020, and $777 million at March 31, 2020. The decrease in the ACL, compared with the same prior year period, was primarily due to an improvement in the economic outlook, compared with the more stressed economic outlook at the outset of the COVID-19 pandemic. The ratio of total ACL to total loans and leases (ex-PPP) was 1.48% at March 31, 2021, compared with 1.74% at December 31, 2020, and 1.56% at March 31, 2020.


Loans and Leases
							1Q21 - 4Q20			1Q21 - 1Q20
(In millions)	1Q21		4Q20		1Q20		$		%	$		%
Loans held for sale	$	77	$	81	$	140	$	(4)	(5)%	$	(63)	(45)%
Loans and leases:
Commercial – excluding PPP loans	24,499		24,900		26,392		(401)		(2)	(1,893)		(7)
Commercial – PPP loans	6,465		5,572		—		893		16	6,465		NM
Commercial real estate	12,060		12,104		11,741		(44)		—	319		3
Consumer	10,448		10,900		11,794		(452)		(4)	(1,346)		(11)
Loans and leases, net of unearned income and fees	53,472		53,476		49,927		(4)		—	3,545		7
Less allowance for loan losses	646		777		730		(131)		(17)	(84)		(12)
Loans and leases held for investment, net of allowance	$	52,826	$	52,699	$	49,197	$	127	—	$	3,629	7

Loans and leases, net of unearned income and fees, increased $3.6 billion, or 7%, to $53.5 billion at March 31, 2021, from $49.9 billion at March 31, 2020, primarily due to the origination of PPP loans. Excluding PPP loans, total loans and leases decreased $2.9 billion, or 6%, to $47.0 billion at March 31, 2021, including a $1.9 billion, or 7%, decrease in commercial loans, as the stressed economic environment and an abundance of liquidity in the marketplace continued to adversely impact loan demand. Within commercial loans, a $2.7 billion decrease in commercial and industrial loans was partially offset by a $751 million increase in municipal loans. Commercial real estate construction and land development loans increased $186 million, and term commercial real estate loans increased $133 million. Consumer loans decreased $1.3 billion, which was spread across all consumer loan subcategories. Unfunded lending commitments and letters of credit increased $2.8 billion, or 12%, to $25.5 billion at March 31, 2021, from $22.7 billion at March 31, 2020, primarily due to a decrease in commitment utilization.


Deposits and Borrowed Funds
							1Q21 - 4Q20				1Q21 - 1Q20
(In millions)	1Q21		4Q20		1Q20		$		%		$		%
Noninterest-bearing demand	$	35,882	$	32,494	$	24,380	$	3,388	10	%	$	11,502	47	%
Interest-bearing:
Savings and money market	35,762		34,571		28,901		1,191		3		6,861		24
Time	2,209		2,588		4,237		(379)		(15)		(2,028)		(48)

Total deposits	$	73,853	$	69,653	$	57,518	$	4,200	6		$	16,335	28

Borrowed funds:
Federal funds purchased and other short-term borrowings	$	1,032	$	1,572	$	3,765	$	(540)	(34)		$	(2,733)	(73)
Long-term debt	1,299		1,336		1,795		(37)		(3)		(496)		(28)
Total borrowed funds	$	2,331	$	2,908	$	5,560	$	(577)	(20)		$	(3,229)	(58)

Total deposits increased by $16.3 billion, or 28%, to $73.9 billion as of March 31, 2021, primarily due to an $11.5 billion increase in noninterest-bearing deposits, which continued to be impacted by government stimulus programs. Average total deposits increased to $71.4 billion for the first quarter of 2021, compared with $56.9 billion for the first quarter of 2020. Average noninterest-bearing deposits increased 43% to $33.7 billion for the first quarter of 2021, from $23.6 billion for the first quarter of 2020, and were 47% and 41% of average total deposits, respectively, for the same periods.


Shareholders’ Equity
							1Q21 - 4Q20				1Q21 - 1Q20
(In millions)	1Q21		4Q20		1Q20		$		%		$		%
Shareholders’ equity:
Preferred stock	$	566	$	566	$	566	$	—	—	%	$	—	—	%
Common stock and additional paid-in capital	2,653		2,686		2,668		(33)		(1)		(15)		(1)
Retained earnings	4,566		4,309		3,979		257		6		587		15
Accumulated other comprehensive income	148		325		259		(177)		(54)		(111)		(43)
Total shareholders' equity	$	7,933	$	7,886	$	7,472	$	47	1		$	461	6

Capital distributions:
Common dividends paid	$	56	$	56	$	56	$	—	—		$	—	—
Bank common stock repurchased	50		—		75		50		NM		(25)		(33)
Total capital distributed to common shareholders	$	106	$	56	$	131	$	50	89		$	(25)	(19)

Zions has posted a supplemental presentation to its website, which will be used to discuss these first quarter results at 5:30 p.m. ET this afternoon (April 19, 2021). Media representatives, analysts, investors, and the public are invited to join this discussion by calling (253) 237-1247 (domestic and international) and entering the passcode 2659447, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation website at zionsbancorporation.com. The webcast of the conference call will also be archived and available for 30 days.

Zions Bancorporation, N.A. is one of the nation's premier financial services companies with annual net revenue of $2.8 billion in 2020 and more than $85 billion of total assets. Zions operates under local management teams and distinct brands in 11 western states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The Bank is a consistent recipient of national and state-wide customer survey awards in small and middle-market banking, as well as a leader in public finance advisory services and Small Business Administration lending, recently ranking as the tenth largest provider in the U.S. of the SBA’s Paycheck Protection Program loans (including both rounds). In addition, Zions is included in the S&P 500 and NASDAQ Financial 100 indices. Investor information and links to local banking brands can be accessed at zionsbancorporation.com.

This earnings release includes “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and assumptions regarding future events or determinations, all of which are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, market trends, industry results or regulatory outcomes to differ materially from those expressed or implied by such forward-looking statements.

Without limiting the foregoing, the words “forecasts,” “targets,” “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “would,” “will” and the negative thereof and similar words and expressions are intended to identify forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about future financial and operating results. Actual results and outcomes may differ materially from those presented, either expressed or implied, in the release. Important risk factors that may cause such material differences are often related to changes in general economic, regulatory, and industry conditions; changes and uncertainties in fiscal, monetary, regulatory, trade and tax policies and legislative and regulatory changes; changes in interest rates and uncertainty regarding the transition away from the London Interbank Offered Rate ("LIBOR") toward other alternative reference rates; the quality and composition of our loan and securities portfolios; competitive pressures and other factors that may affect aspects of our business, such as pricing and demand for our products and services; our ability to execute our strategic plans, manage our risks, and achieve our business objectives; our ability to develop and maintain information security systems, technologies and controls designed to guard against fraud, cyber and privacy risks; and the effects of the COVID-19 pandemic and similar outbreaks that may occur in the future and governmental responses to such matters. These factors, among others, are discussed in the Bank’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission (SEC) and available at the SEC’s Internet site (https://www.sec.gov/). In addition, you may obtain documents filed with the SEC by the Bank free of charge by contacting: Investor Relations, Zions Bancorporation, N.A., One South Main Street, 11th Floor, Salt Lake City, Utah 84133, (801) 844-7637.


	Three Months Ended
(In millions, except share, per share, and ratio data)	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
BALANCE SHEET 1
Loans held for investment, net of allowance	$	52,826		$	52,699		$	53,892		$	54,269		$	49,197
Total assets	85,121			81,479			78,357			76,447			71,467
Deposits	73,853			69,653			67,094			65,684			57,518
Total shareholders’ equity	7,933			7,886			7,668			7,575			7,472
STATEMENT OF INCOME
Net earnings applicable to common shareholders	$	314		$	275		$	167		$	57		$	6
Net interest income	545			550			555			563			548
Taxable-equivalent net interest income 2	553			557			562			569			555
Total noninterest income	169			166			157			117			134
Total noninterest expense	435			424			442			430			408
Adjusted pre-provision net revenue 2	253			280			267			300			299
Provision for credit losses	(132)			(67)			55			168			258
SHARE AND PER COMMON SHARE AMOUNTS
Net earnings per diluted common share	$	1.90		$	1.66		$	1.01		$	0.34		$	0.04
Dividends	0.34			0.34			0.34			0.34			0.34
Book value per common share 1	44.98			44.61			43.30			42.74			42.15
Tangible book value per common share 1, 2	38.77			38.42			37.11			36.56			35.96
Weighted average share price	51.34			36.86			32.09			31.53			41.02
Weighted average diluted common shares outstanding (in thousands)	163,887			163,900			163,779			164,425			172,998
Common shares outstanding (in thousands) 1	163,800			164,090			164,009			163,978			163,852
SELECTED RATIOS AND OTHER DATA
Return on average assets	1.57		%	1.41		%	0.89		%	0.35		%	0.08		%
Return on average common equity	17.4		%	15.3		%	9.4		%	3.3		%	0.3		%
Return on average tangible common equity 2	20.2		%	17.8		%	11.0		%	3.8		%	0.4		%
Net interest margin	2.86		%	2.95		%	3.06		%	3.23		%	3.41		%
Cost of total deposits, annualized	0.05		%	0.08		%	0.11		%	0.15		%	0.36		%
Efficiency ratio 2	63.5		%	60.2		%	62.2		%	57.3		%	57.7		%
Effective tax rate	21.7		%	20.9		%	18.6		%	19.5		%	12.5		%
Ratio of nonperforming assets to loans and leases and other real estate owned	0.61		%	0.69		%	0.68		%	0.62		%	0.56		%
Annualized ratio of net loan and lease charge-offs to average loans	0.06		%	0.11		%	0.38		%	0.23		%	0.06		%
Ratio of total allowance for credit losses to loans and leases outstanding 1	1.30		%	1.56		%	1.68		%	1.66		%	1.56		%
Full-time equivalent employees	9,682			9,678			9,726			9,859			9,879
CAPITAL RATIOS AND DATA 1
Common equity tier 1 capital 3	$	6,206		$	6,013		$	5,804		$	5,696		$	5,667
Risk-weighted assets 3	55,422			55,866			55,654			55,878			56,861
Tangible common equity ratio	7.6		%	7.8		%	7.9		%	7.9		%	8.4		%
Common equity tier 1 capital ratio 3	11.2		%	10.8		%	10.4		%	10.2		%	10.0		%
Tier 1 leverage ratio 3	8.3		%	8.3		%	8.3		%	8.4		%	9.0		%
Tier 1 risk-based capital ratio 3	12.2		%	11.8		%	11.4		%	11.2		%	11.0		%
Total risk-based capital ratio 3	14.5		%	14.1		%	13.7		%	13.5		%	13.2		%


(In millions, shares in thousands)	March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020
	(Unaudited)				(Unaudited)		(Unaudited)		(Unaudited)
ASSETS
Cash and due from banks	$	576	$	543	$	576	$	570	$	730
Money market investments:
Interest-bearing deposits	8,427		1,074		856		1,579		1,225
Federal funds sold and security resell agreements	1,315		5,765		2,804		266		550
Investment securities:
Held-to-maturity1, at amortized cost	583		636		592		688		585
Available-for-sale, at fair value	16,644		15,731		14,662		14,201		14,231
Trading account, at fair value	189		266		198		160		160

Total securities, net of allowance	17,416		16,633		15,452		15,049		14,976
Loans held for sale	77		81		89		105		140
Loans and leases, net of unearned income and fees	53,472		53,476		54,745		55,129		49,927
Less allowance for loan losses	646		777		853		860		730
Loans held for investment, net of allowance	52,826		52,699		53,892		54,269		49,197
Other noninterest-bearing investments	815		817		830		813		916
Premises, equipment and software, net	1,236		1,209		1,187		1,173		1,144
Goodwill and intangibles	1,016		1,016		1,016		1,014		1,014
Other real estate owned	3		4		6		5		6
Other assets	1,414		1,638		1,649		1,604		1,569
Total assets	$	85,121	$	81,479	$	78,357	$	76,447	$	71,467
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand	$	35,882	$	32,494	$	31,338	$	30,714	$	24,380
Interest-bearing:
Savings and money market	35,762		34,571		32,305		31,307		28,901
Time	2,209		2,588		3,451		3,663		4,237

Total deposits	73,853		69,653		67,094		65,684		57,518
Federal funds purchased and other short-term borrowings	1,032		1,572		1,252		860		3,765
Long-term debt	1,299		1,336		1,347		1,353		1,795
Reserve for unfunded lending commitments	49		58		64		54		47
Other liabilities	955		974		932		921		870
Total liabilities	77,188		73,593		70,689		68,872		63,995
Shareholders’ equity:
Preferred stock, without par value; authorized 4,400 shares	566		566		566		566		566
Common stock2 ($0.001 par value; authorized 350,000 shares) and additional paid-in capital	2,653		2,686		2,680		2,675		2,668
Retained earnings	4,566		4,309		4,090		3,979		3,979
Accumulated other comprehensive income	148		325		332		355		259


Total shareholders’ equity	7,933		7,886		7,668		7,575		7,472
Total liabilities and shareholders’ equity	$	85,121	$	81,479	$	78,357	$	76,447	$	71,467
1 Held-to-maturity (approximate fair value)	$	584	$	640	$	596	$	691	$	587
2 Common shares (issued and outstanding)	163,800		164,090		164,009		163,978		163,852


(Unaudited)	Three Months Ended
(In millions, except share and per share amounts)	March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020
Interest income:
Interest and fees on loans	$	488	$	499	$	505	$	514	$	532
Interest on money market investments	3		3		2		1		8
Interest on securities	71		69		74		80		82
Total interest income	562		571		581		595		622
Interest expense:
Interest on deposits	9		13		18		23		51
Interest on short- and long-term borrowings	8		8		8		9		23
Total interest expense	17		21		26		32		74
Net interest income	545		550		555		563		548
Provision for credit losses:
Provision for loan losses	(123)		(61)		45		161		240
Provision for unfunded lending commitments	(9)		(6)		10		7		18

Total provision for credit losses	(132)		(67)		55		168		258
Net interest income after provision for credit losses	677		617		500		395		290
Noninterest income:
Commercial account fees	32		32		32		30		31
Card fees	21		22		21		19		21
Retail and business banking fees	17		18		17		15		19
Loan-related fees and income	25		25		32		27		26
Capital markets and foreign exchange fees	15		19		16		18		24
Wealth management fees	12		10		10		9		11

Other customer-related fees	11		13		11		12		11
Customer-related fees	133		139		139		130		143
Fair value and nonhedge derivative income (loss)	18		8		8		(12)		(11)
Dividends and other income	7		7		6		3		8
Securities gains (losses), net	11		12		4		(4)		(6)
Total noninterest income	169		166		157		117		134
Noninterest expense:
Salaries and employee benefits	288		277		269		267		274
Occupancy, net	33		33		33		32		33
Furniture, equipment and software, net	32		30		32		32		32
Other real estate expense, net	—		1		—		—		—
Credit-related expense	6		6		6		6		4
Professional and legal services	20		19		12		10		12
Advertising	5		6		7		3		3
FDIC premiums	7		6		7		7		5
Other	44		46		76		73		45
Total noninterest expense	435		424		442		430		408
Income before income taxes	411		359		215		82		16
Income taxes	89		75		40		16		2
Net income	322		284		175		66		14


Preferred stock dividends	(8)		(9)		(8)		(9)		(8)

Net earnings applicable to common shareholders	$	314	$	275	$	167	$	57	$	6
Weighted average common shares outstanding during the period:
Basic shares (in thousands)	163,551		163,658		163,608		163,542		164,143
Diluted shares (in thousands)	163,887		163,900		163,779		164,425		172,998
Net earnings per common share:
Basic	$	1.90	$	1.66	$	1.01	$	0.34	$	0.04
Diluted	1.90		1.66		1.01		0.34		0.04


(In millions)	March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020
Commercial:
Commercial and industrial	$	12,843	$	13,444	$	13,543	$	14,076	$	15,533
PPP	6,465		5,572		6,810		6,690		—
Leasing	310		320		319		324		331
Owner occupied	8,112		8,185		8,136		8,083		8,045
Municipal	3,234		2,951		2,706		2,535		2,483
Total commercial	30,964		30,472		31,514		31,708		26,392
Commercial real estate:
Construction and land development	2,443		2,345		2,298		2,367		2,257
Term	9,617		9,759		9,729		9,587		9,484
Total commercial real estate	12,060		12,104		12,027		11,954		11,741
Consumer:
Home equity credit line	2,695		2,745		2,797		2,856		2,958
1-4 family residential	6,630		6,969		7,209		7,393		7,567
Construction and other consumer real estate	589		630		633		640		629
Bankcard and other revolving plans	409		432		431		437		488
Other	125		124		134		141		152
Total consumer	10,448		10,900		11,204		11,467		11,794
Loans and leases, net of unearned income and fees	$	53,472	$	53,476	$	54,745	$	55,129	$	49,927


(In millions)	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020

Nonaccrual loans1	$	324		$	367		$	366		$	339		$	274
Other real estate owned	3			4			6			5			6
Total nonperforming assets	$	327		$	371		$	372		$	344		$	280
Ratio of nonperforming assets to loans1 and leases and other real estate owned	0.61		%	0.69		%	0.68		%	0.62		%	0.56		%
Accruing loans past due 90 days or more	$	9		$	12		$	9		$	16		$	8
Ratio of accruing loans past due 90 days or more to loans1 and leases	0.02		%	0.02		%	0.02		%	0.03		%	0.02		%
Nonaccrual loans and accruing loans past due 90 days or more	$	333		$	379		$	375		$	355		$	282
Ratio of nonaccrual loans and accruing loans past due 90 days or more to loans1 and leases	0.62		%	0.71		%	0.68		%	0.64		%	0.56		%
Accruing loans past due 30-89 days	$	100		$	112		$	58		$	168		$	135
Restructured loans included in nonaccrual loans	134			113			84			88			88
Restructured loans on accrual	280			198			197			197			79
Classified loans	1,660			1,641			1,639			1,477			881


	Three Months Ended
(In millions)	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
Allowance for Loan Losses
Balance at beginning of period	$	777		$	853		$	860		$	730		$	497

Provision for loan losses	(123)			(61)			45			161			240

Loan and lease charge-offs	21			21			58			36			13
Less: Recoveries	13			6			6			5			6
Net loan and lease charge-offs	8			15			52			31			7
Balance at end of period	$	646		$	777		$	853		$	860		$	730
Ratio of allowance for loan losses to loans1 and leases, at period end	1.21		%	1.45		%	1.56		%	1.56		%	1.46		%
Ratio of allowance for loan losses to nonaccrual loans1 at period end	199		%	212		%	242		%	254		%	266		%
Annualized ratio of net loan and lease charge-offs to average loans	0.06		%	0.11		%	0.38		%	0.23		%	0.06		%

Reserve for Unfunded Lending Commitments
Balance at beginning of period	$	58		$	64		$	54		$	47		$	29
Provision for unfunded lending commitments	(9)			(6)			10			7			18
Balance at end of period	$	49		$	58		$	64		$	54		$	47

Allowance for Credit Losses
Allowance for loan losses	$	646		$	777		$	853		$	860		$	730
Reserve for unfunded lending commitments	49			58			64			54			47
Total allowance for credit losses	$	695		$	835		$	917		$	914		$	777
Ratio of total allowance for credit losses to loans1 and leases outstanding, at period end	1.30		%	1.56		%	1.68		%	1.66		%	1.56		%
Ratio of total allowance for credit losses to loans1 and leases outstanding (excluding PPP loans), at period end	1.48		%	1.74		%	1.91		%	1.88		%	1.56		%


(In millions)	March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020

Loans held for sale	$	—	$	—	$	14	$	—	$	—
Commercial:
Commercial and industrial	$	119	$	140	$	158	$	172	$	135
Leasing	—		—		1		1		1
Owner occupied	74		76		81		68		65
Municipal	—		—		—		—		—
Total commercial	193		216		240		241		201
Commercial real estate:
Construction and land development	—		—		—		—		—
Term	31		31		37		23		15
Total commercial real estate	31		31		37		23		15
Consumer:
Home equity credit line	19		16		16		15		14
1-4 family residential	80		103		59		59		43
Construction and other consumer real estate	—		—		—		—		—
Bankcard and other revolving plans	1		1		—		1		1
Other	—		—		—		—		—
Total consumer	100		120		75		75		58

Total nonaccrual loans	$	324	$	367	$	366	$	339	$	274


(In millions)	March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020
Commercial:
Commercial and industrial	$	8	$	15	$	51	$	26	$	7
Leasing	—		—		—		—		—
Owner occupied	—		—		(1)		2		(1)
Municipal	—		—		—		—		—
Total commercial	8		15		50		28		6
Commercial real estate:
Construction and land development	—		—		—		—		—
Term	—		—		1		—		—
Total commercial real estate	—		—		1		—		—
Consumer:
Home equity credit line	(1)		—		—		—		—
1-4 family residential	(1)		(1)		—		—		(1)
Construction and other consumer real estate	—		—		—		—		—
Bankcard and other revolving plans	1		—		1		2		1
Other	1		1		—		1		1
Total consumer loans	—		—		1		3		1
Total net charge-offs (recoveries)	$	8	$	15	$	52	$	31	$	7


(Unaudited)	Three Months Ended
	March 31, 2021				December 31, 2020				March 31, 2020
(In millions)	Average balance		Average yield/rate 1		Average balance		Average yield/rate 1		Average balance		Average yield/rate 1
ASSETS
Money market investments	$	7,791	0.16	%	$	5,450	0.21	%	$	2,013	1.52	%
Securities:
Held-to-maturity	663		2.98	%	577		3.49	%	593		3.72	%
Available-for-sale	15,876		1.69	%	14,926		1.70	%	13,687		2.26	%
Trading account	231		3.96	%	198		4.55	%	164		4.27	%
Total securities	16,770		1.77	%	15,701		1.81	%	14,444		2.34	%
Loans held for sale	68		2.81	%	62		2.32	%	109		3.14	%
Loans held for investment:2
Commercial - excluding PPP loans	24,732		3.83	%	24,583		3.91	%	25,514		4.53	%
Commercial - PPP loans	6,135		3.98	%	6,310		3.50	%	—		—	%
Commercial real estate	12,133		3.50	%	12,013		3.55	%	11,546		4.62	%
Consumer	10,665		3.59	%	11,068		3.58	%	11,737		3.99	%
Total loans held for investment	53,665		3.73	%	53,974		3.71	%	48,797		4.42	%
Total interest-earning assets	78,294		2.95	%	75,187		3.06	%	65,363		3.87	%
Cash and due from banks	614				601				676
Allowance for credit losses on loans and debt securities	(774)				(854)				(499)
Goodwill and intangibles	1,016				1,016				1,014
Other assets	3,930				4,110				3,651
Total assets	$	83,080			$	80,060			$	70,205
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
Savings and money market	$	35,232	0.07	%	$	33,305	0.09	%	$	28,856	0.47	%
Time	2,491		0.55	%	2,925		0.76	%	4,454		1.61	%

Total interest-bearing deposits	37,723		0.10	%	36,230		0.14	%	33,310		0.62	%
Borrowed funds:
Federal funds purchased and other short-term borrowings	1,110		0.07	%	1,336		0.08	%	2,922		1.19	%
Long-term debt	1,324		2.30	%	1,342		2.25	%	1,747		3.21	%
Total borrowed funds	2,434		1.28	%	2,678		1.17	%	4,669		1.95	%
Total interest-bearing funds	40,157		0.17	%	38,908		0.21	%	37,979		0.78	%
Noninterest-bearing deposits	33,723				32,036				23,599
Other liabilities	1,301				1,384				1,137
Total liabilities	75,181				72,328				62,715
Shareholders’ equity:
Preferred equity	566				566				566
Common equity	7,333				7,166				6,924


Total shareholders’ equity	7,899				7,732				7,490
Total liabilities and shareholders’ equity	$	83,080			$	80,060			$	70,205
Spread on average interest-bearing funds			2.78	%			2.85	%			3.09	%
Impact of net noninterest-bearing sources of funds			0.08	%			0.10	%			0.32	%
Net interest margin			2.86	%			2.95	%			3.41	%
Memo: total loans and leases, excluding PPP loans	47,530		3.69	%	47,664		3.74	%	48,797		4.42	%

Memo: total cost of deposits			0.05	%			0.08	%			0.36	%
Memo: total deposits and interest-bearing liabilities	73,880		0.09	%	70,944		0.12	%	61,578		0.48	%

This press release presents non-GAAP financial measures, in addition to GAAP financial measures, to provide investors with additional information. The adjustments to reconcile from the applicable GAAP financial measures to the non-GAAP financial measures are presented in the following schedules. We consider these adjustments to be relevant to ongoing operating results and provide a meaningful base for period-to-period and company-to-company comparisons. These non-GAAP financial measures are used by us to assess our performance and financial position and for presentations of our performance to investors. We further believe that presenting these non-GAAP financial measures will permit investors to assess our performance on the same basis as that applied by our management.


(In millions, except shares and per share amounts)		March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020
Tangible Book Value per Common Share
Total shareholders’ equity (GAAP)		$	7,933	$	7,886	$	7,668	$	7,575	$	7,472
Preferred stock		(566)		(566)		(566)		(566)		(566)
Goodwill and intangibles		(1,016)		(1,016)		(1,016)		(1,014)		(1,014)
Tangible common equity (non-GAAP)	(a)	$	6,351	$	6,304	$	6,086	$	5,995	$	5,892
Common shares outstanding (in thousands)	(b)	163,800		164,090		164,009		163,978		163,852
Tangible book value per common share (non-GAAP)	(a/b)	$	38.77	$	38.42	$	37.11	$	36.56	$	35.96

Return on Average Tangible Common Equity (“ROTCE”) – this schedule also includes “net earnings applicable to common shareholders, excluding the effects of the adjustments, net of tax” and “average tangible common equity.” ROTCE is a non-GAAP financial measure that we believe provides useful information about our use of shareholders’ equity. We believe the use of ratios that utilize tangible equity provides additional useful information about our performance because they present measures of those assets that can generate income.


		Three Months Ended
(Dollar amounts in millions)		March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
Return on Average Tangible Common Equity
Net earnings applicable to common shareholders (GAAP)		$	314		$	275		$	167		$	57		$	6
Adjustments, net of tax:

Amortization of core deposit and other intangibles		—			—			—			—			—
Net earnings applicable to common shareholders, excluding the effects of the adjustments, net of tax (non-GAAP)	(a)	$	314		$	275		$	167		$	57		$	6
Average common equity (GAAP)		$	7,333		$	7,166		$	7,078		$	7,030		$	6,924
Average goodwill and intangibles		(1,016)			(1,016)			(1,015)			(1,014)			(1,014)
Average tangible common equity (non-GAAP)	(b)	$	6,317		$	6,150		$	6,063		$	6,016		$	5,910
Number of days in quarter	(c)	90			92			92			91			91
Number of days in year	(d)	365			366			366			366			366
Return on average tangible common equity (non-GAAP)	(a/b/c)*d	20.2		%	17.8		%	11.0		%	3.8		%	0.4		%

Efficiency Ratio – this schedule also includes “adjusted noninterest expense,” “taxable-equivalent net interest income,” “adjusted taxable-equivalent revenue,” “pre-provision net revenue (PPNR)” and “adjusted PPNR.” The methodology of determining the efficiency ratio may differ among companies. We make adjustments to exclude certain items as identified in the subsequent schedule which we believes allows for more consistent comparability among periods. We believe the efficiency ratio provides useful information regarding the cost of generating revenue. Adjusted noninterest expense provides a measure as to how well we are managing our expenses, and adjusted PPNR enables us and others to assess our ability to generate capital to cover credit losses through a credit cycle. Taxable-equivalent net interest income allows us to assess the comparability of revenue arising from both taxable and tax-exempt sources.


		Three Months Ended
(In millions)		March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
Efficiency Ratio
Noninterest expense (GAAP)	(a)	$	435		$	424		$	442		$	430		$	408
Adjustments:
Severance costs		—			1			1			—			—
Other real estate expense, net		—			1			—			—			—


Restructuring costs		—			(1)			1			—			1
Pension termination-related expense		(5)			—			—			28			—
Total adjustments	(b)	(5)			1			2			28			1
Adjusted noninterest expense (non-GAAP)	(a-b)=(c)	$	440		$	423		$	440		$	402		$	407
Net interest income (GAAP)	(d)	$	545		$	550		$	555		$	563		$	548
Fully taxable-equivalent adjustments	(e)	8			7			7			6			7
Taxable-equivalent net interest income (non-GAAP)	(d+e)=(f)	553			557			562			569			555
Noninterest income (GAAP)	(g)	169			166			157			117			134
Combined income (non-GAAP)	(f+g)=(h)	722			723			719			686			689
Adjustments:
Fair value and nonhedge derivative income (loss)		18			8			8			(12)			(11)
Securities gains (losses), net		11			12			4			(4)			(6)
Total adjustments	(i)	29			20			12			(16)			(17)
Adjusted taxable-equivalent revenue (non-GAAP)	(h-i)=(j)	$	693		$	703		$	707		$	702		$	706
Pre-provision net revenue (PPNR) (non-GAAP)	(h)-(a)	$	287		$	299		$	277		$	256		$	281
Adjusted PPNR (non-GAAP)	(j)-(c)	253			280			267			300			299
Efficiency ratio (non-GAAP) 1	(c/j)	63.5		%	60.2		%	62.2		%	57.3		%	57.7		%


Zions Bancorporation, N.A. One South Main Salt Lake City, UT 84133 April 19, 2021
www.zionsbancorporation.com


Zions Bancorporation, N.A. Reports: 1Q21 Net Earnings¹ of $314 million, diluted EPS of $1.90
compared with 1Q20 Net Earnings¹ of $6 million, diluted EPS of $0.04, and 4Q20 Net Earnings¹ of $275 million, diluted EPS of $1.66