Zions Bancorporation reported net earnings applicable to common shareholders of $169 million for the first quarter of 2025, or $1.13 per diluted common share. This represents an 18% increase in net earnings compared to $143 million, or $0.96 per diluted share, in Q1 2024.
Adjusted Pre-Provision Net Revenue (PPNR) grew year-over-year to $267 million, and Net Interest Income (NII) increased by $38 million, or 6%, to $624 million. The Net Interest Margin (NIM) improved to 3.10%, driven by a 30 basis point decrease in total funding costs to 1.76%.
Noninterest income rose by $15 million, or 10%, to $171 million, with customer-related noninterest income up 4% due to higher loan-related and capital markets fees. The efficiency ratio improved to 66.60% from 67.90% in the prior year period, indicating better cost management.
Total loans and leases increased by 1% sequentially to $59.94 billion, primarily from consumer 1-4 family residential mortgage and term commercial real estate portfolios. Total deposits decreased by 1% sequentially to $75.69 billion, with uninsured deposits at 43% of total deposits.
Net loan and lease charge-offs remained low at $16 million, or 0.11% annualized, for the quarter. However, classified loans remained elevated at $2.90 billion, primarily concentrated in multifamily and industrial CRE portfolios, influenced by a change in risk grading methodology. The Allowance for Credit Losses (ACL) was $743 million, or 1.24% of total loans and leases.
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