Current Report Filing (8-k)

$214 million

Earnings per diluted common share

Net Earnings ¹

Net interest margin (“NIM”)

Common Equity
Tier 1

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported) October 21, 2019

ZIONS BANCORPORATION, NATIONAL ASSOCIATION

(Exact name of registrant as specified in its charter)



United States of America	001-12307		87-0189025
(State or other jurisdiction of incorporation or organization)	(Commission File Number)		(I.R.S. Employer Identification No.)

One South Main,	Salt Lake City,	Utah	84133
(Address of Principal Executive Offices)			(Zip Code)

Registrant's telephone number, including area code (801) 844-7637

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:



Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, par value $0.001	ZION	The NASDAQ Stock Market, LLC
Warrants to Purchase Common stock (expiring May 22, 2020)	ZIONW	The NASDAQ Stock Market, LLC
Depositary Shares each representing a 1/40th ownership interest in a share of:
Series A Floating-Rate Non-Cumulative Perpetual Preferred Stock	ZB/A	New York Stock Exchange
Series G Fixed/Floating-Rate Non-Cumulative Perpetual Preferred Stock	ZB/G	New York Stock Exchange
Series H 5.75% Non-Cumulative Perpetual Preferred Stock	ZB/H	New York Stock Exchange
6.95% Fixed-to-Floating Rate Subordinated Notes due September 15, 2028	ZBK	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On October 21, 2019, Zions Bancorporation, National Association (“the Bank”) announced its financial results for the quarter ended September 30, 2019 and its intent to host a conference call to discuss such results at 5:30 p.m. Eastern Time on October 21, 2019. The press release announcing the financial results for the quarter ended September 30, 2019 is furnished as Exhibit 99.1 and incorporated herein by reference. A presentation to be used in conjunction with the conference call regarding the Company’s third quarter financial results is furnished as Exhibit 99.2 and incorporated herein by reference.

The information in this Current Report on Form 8-K, including the exhibits, is furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section. Furthermore, the information in this Current Report on Form 8-K, including the exhibits, shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are furnished as part of this Current Report on Form 8-K:

Exhibit 99.1Press Release dated October 21, 2019 (furnished herewith).

Exhibit 99.2Earnings Release Presentation dated October 21, 2019 (furnished herewith).

Exhibit 101 Cover Page Interactive Data File - the cover page XBRL tags are embedded within

the Inline XBRL document.

Exhibit 104 The cover page from this Current Report on form 8-K, formatted as Inline XBRL.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



	ZIONS BANCORPORATION, NATIONAL ASSOCIATION

	By:	/s/ Paul E. Burdiss
		Name: Paul E. Burdiss
		Title: Executive Vice President and Chief Financial Officer
Date: October 21, 2019

ZIONS BANCORPORATION, N.A.

Press Release – Page 1

October 21, 2019



Zions Bancorporation, N.A. One South Main Salt Lake City, UT 84133 October 21, 2019
www.zionsbancorporation.com

Third Quarter 2019 Financial Results: FOR IMMEDIATE RELEASE

Investor and Media Contact: James Abbott (801) 844-7637

Zions Bancorporation, N.A. Reports: 3Q19 Net Earnings¹ of $214 million, diluted EPS of $1.17

compared with 3Q18 Net Earnings¹ of $215 million, diluted EPS of $1.04,
and 2Q19 Net Earnings¹ of $189 million, diluted EPS of $0.99

THIRD QUARTER RESULTS



THIRD QUARTER HIGHLIGHTS²

Net Interest Income and NIM	•	Net interest income was $567 million, compared with $565 million
	•	NIM was 3.48%, compared with 3.63%
	•	Total cost of deposits increased 22 basis points, while total cost of deposits from the second quarter of 2019 increased 1 basis point
	•	Average total deposits increased to $55.3 billion, compared with $53.6 billion

Operating Performance	•	Pre-provision net revenue ("PPNR") was $305 million, up 7%
	•	Adjusted PPNR³ was $309 million, up 6%
	•	Noninterest expense was $415 million, down 1%
	•	Adjusted noninterest expense³ was $415 million, stable from the prior year
	•	Efficiency ratio³ was 57.3%, compared with 58.8%

Loans and Credit Quality	•	Net loans and leases were $48.8 billion, up $3.0 billion, or 7%
	•	Nonperforming assets were $237 million, down 19%
	•	Provision for credit losses was $10 million, compared with $(11) million
	•	Net charge-offs of 0.01% of average loans, compared with net credit recoveries of 0.01% of average loans

Capital Returns	•	Return on average tangible common equity³ was 14.2% for both periods
	•	Common stock repurchases of $275 million, 6.6 million shares, or 3.8% of shares outstanding as of June 30, 2019
	•	Common dividend increased to $0.34 per share from $0.30 per share

Notable Items	•	Net charge-offs of 0.01% of average loans for the trailing 12 months

CEO COMMENTARY

Harris H. Simmons, Chairman and CEO, commented, “Given the challenging interest rate environment in which banks currently operate, we’re pleased with the quarter’s overall results. We achieved solid growth of both demand and interest-bearing deposits, moderate loan growth, strong customer-related fee income growth, and flat operating expenses. Credit quality also remained well-controlled, with annualized net charge-offs of only 0.01% of average loans, and nonperforming assets which declined to less than 0.5% of average loans. A 12% reduction in average outstanding diluted shares relative to last year’s third quarter helped produce a 13% increase in earnings per share.”

Mr. Simmons continued, “As we adjust to a lower interest rate environment and anticipate the resulting continued pressure on interest margins, we will continue to take steps to carefully manage operating expenses in the year ahead. We are optimistic that we will be able to manage 2020 operating expenses to a level that is no more than, and likely modestly reduced from, expected 2019 results.”

OPERATING PERFORMANCE³

¹ Net Earnings is net earnings applicable to common shareholders.
² Comparisons noted in the bullet points are calculated for the current quarter versus the same prior-year period, unless otherwise specified.
³ For information on non-GAAP financial measures and the reasons for which the Bank presents these numbers, see pages 16-19.

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ZIONS BANCORPORATION, N.A.

Press Release – Page 2

October 21, 2019

Comparisons noted in the sections below are calculated for the current quarter versus the same prior-year period, unless otherwise specified. Growth rates of 100% or more are rendered as not meaningful as they are generally reflective of a low initial starting point.

RESULTS OF OPERATIONS



Net Interest Income and Margin
										3Q19 - 2Q19					3Q19 - 3Q18
(In millions)	3Q19			2Q19			3Q18			$			%		$			%
Interest and fees on loans	$	581		$	581		$	537		$	—		—	%	$	44		8	%
Interest on money market investments	8			8			8			—			—		—			—
Interest on securities	88			95			86			(7		)	(7	)	2			2
Total interest income	677			684			631			(7		)	(1	)	46			7
Interest on deposits	69			66			38			3			5		31			82
Interest on short and long-term borrowings	41			49			28			(8		)	(16	)	13			46
Total interest expense	110			115			66			(5		)	(4	)	44			67
Net interest income	$	567		$	569		$	565		$	(2	)	—		$	2		—
										bps					bps
Yield on interest-earning assets	4.15		%	4.24		%	4.06		%	(9		)			9
Rate paid on total deposits and interest-bearing liabilities	0.71		%	0.75		%	0.45		%	(4		)			26
Cost of total deposits	0.50		%	0.49		%	0.28		%	1					22
Net interest margin	3.48		%	3.54		%	3.63		%	(6		)			(15		)

Net interest income increased $2 million to $567 million in the third quarter of 2019 from $565 million in the third quarter of 2018. Total interest income increased $46 million due to a $44 million increase in interest and fees on loans, primarily resulting from average loan growth of $3.5 billion. Interest expense increased $44 million primarily due to increases in the rate paid on deposits and short and long-term borrowings, reflecting the increase in short-term interest rates, in addition to a $1.8 billion, or 41%, increase in average short and long-term borrowings.

The yield on interest earning assets was 4.15%, a decrease of 9 basis points compared with the second quarter of 2019, and an increase of 9 basis points compared with the third quarter of 2018. When adjusted for interest recoveries of $3 million in the third quarter of 2018, using $1 million per loan as the reporting threshold, the yield on interest earning assets increased 11 basis points. Relative to the prior quarter, there was no material change in the recovery of interest income from nonaccrual loans. The yield on securities increased modestly over the year ago rate; however, relative to the second quarter of 2019, the yield on securities declined somewhat due to increased premium amortization resulting from faster repayment speeds.

The rate paid on total deposits and interest-bearing liabilities was 0.71% for the third quarter of 2019, a decrease from 0.75% for the second quarter of 2019, and an increase from 0.45% for the third quarter of 2018. The decline from the second quarter of 2019 was primarily due to lower rates paid on federal funds purchased and other short-term borrowings in addition to strong deposit growth. The increase from the third quarter of 2018 was due to an increase in the cost of deposits and other borrowed funds. The annualized cost of total deposits for the third quarter of 2019 was 0.50%, compared with 0.49% for the second quarter of 2019, and 0.28% for the third quarter of 2018.

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ZIONS BANCORPORATION, N.A.

Press Release – Page 3

October 21, 2019

The net interest margin decreased to 3.48% in the third quarter of 2019, compared with 3.54% in the second quarter of 2019, and 3.63% in the same prior year period. The decrease from the second quarter of 2019 was primarily due a decline in loan and securities yields. The decrease from the same prior year period was due to an increase in the cost of deposits, partially offset by an increase in yields on interest-earning assets.



Noninterest Income
									3Q19 - 2Q19					3Q19 - 3Q18
(In millions)	3Q19		2Q19			3Q18			$			%		$			%
Commercial account fees	$	31	$	30		$	31		$	1		3	%	$	—		—	%
Card fees	24		23			24			1			4		—			—
Retail and business banking fees	20		20			19			—			—		1			5
Loan-related fees and income	21		17			17			4			24		4			24
Capital markets and foreign exchange fees	23		20			14			3			15		9			64
Wealth management and trust fees	16		15			14			1			7		2			14
Other customer-related fees	5		5			7			—			—		(2		)	(29	)
Customer-related fees	140		130			126			10			8		14			11
Dividends and other income	4		5			11			(1		)	(20	)	(7		)	(64	)
Securities gains (losses), net	2		(3		)	(1		)	5			NM		3			NM
Total noninterest income	$	146	$	132		$	136		$	14		11		$	10		7

Total noninterest income for the third quarter of 2019 increased by $10 million, or 7%, to $146 million from $136 million for the third quarter of 2018. Customer-related fees increased $14 million, which was largely attributable to a $7 million increase in fees for customer interest rate swap activity. Loan-related fees and income increased by $4 million, primarily due to an increase in volume of mortgage loan originations and sales to government-sponsored entities. Dividends and other income decreased by $7 million primarily due to a valuation adjustment on client-related interest rate swaps in the third quarter of 2019. As a result of the decline in interest rates during 2019 and increased client activity during the quarter, these client-related interest rate swaps significantly increased in value, resulting in the Bank having a larger exposure to the clients and a $6 million valuation adjustment in the third quarter of 2019, compared with $6 million in the second quarter of 2019, and less than $1 million in the third quarter of 2018.



Noninterest Expense
								3Q19 - 2Q19					3Q19 - 3Q18
(In millions)	3Q19			2Q19		3Q18		$			%		$			%
Salaries and employee benefits	$	273		$	274	$	264	$	(1	)	—	%	$	9		3	%
Occupancy, net	34			32		33		2			6		1			3
Furniture, equipment and software, net	34			35		30		(1		)	(3	)	4			13
Other real estate expense, net	(2		)	—		1		(2		)	NM		(3		)	NM
Credit-related expense	2			8		5		(6		)	(75	)	(3		)	(60	)
Professional and legal services	10			13		12		(3		)	(23	)	(2		)	(17	)
Advertising	6			5		8		1			20		(2		)	(25	)
FDIC premiums	7			6		18		1			17		(11		)	(61	)
Other	51			51		49		—			—		2			4
Total noninterest expense	$	415		$	424	$	420	$	(9	)	(2	)	$	(5	)	(1	)
Adjusted noninterest expense¹	$	415		$	423	$	416	$	(8	)	(2	)	$	(1	)	—


¹	For information on non-GAAP financial measures, see pages 16-19.

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ZIONS BANCORPORATION, N.A.

Press Release – Page 4

October 21, 2019

Noninterest expense for the third quarter of 2019 was $415 million, a decrease of 1% when compared with $420 million for the third quarter of 2018. FDIC premiums decreased $11 million primarily due to the elimination of the FDIC surcharge for large banks because the required Deposit Insurance Fund reserve ratio has been met, and the Bank issuing unsecured debt which results in lower FDIC premiums. Other real estate expense and credit-related expense both decreased by $3 million.

The aforementioned decreases in noninterest expense were partially offset by a $9 million increase in salaries and employee benefits and a $4 million increase in furniture, equipment and software expense. The increase in salaries and employee benefits was primarily due to a $13 million increase in base salaries, resulting from annual salary merit increases and employee headcount and a $2 million increase in employee benefits, partially offset by an $8 million decrease in incentive compensation. Furniture, equipment and software expense increased primarily as a result of the successful implementation of the second phase of our three-phase multi-year project to replace our core loan and deposit systems, which occurred in the first quarter of 2019, and has subsequently resulted in increased amortization expense.

Our efficiency ratio was 57.3% in the third quarter of 2019, compared with 59.0% in the second quarter of 2019, and 58.8% in the third quarter of 2018. Adjusted noninterest expense for the third quarter of 2019 decreased $1 million, or less than 1%, to $415 million, compared with $416 million for the same prior year period. For information on non-GAAP financial measures, including differences between noninterest expense and adjusted noninterest expense, see pages 16-19.

BALANCE SHEET ANALYSIS



Asset Quality
										3Q19 - 2Q19					3Q19 - 3Q18
(In millions)	3Q19			2Q19			3Q18			bps					bps
Ratio of nonperforming assets to loans and leases and other real estate owned	0.48		%	0.52		%	0.64		%	(4		)			(16		)
Annualized ratio of net loan and lease charge-offs (recoveries) to average loans	0.01		%	0.12		%	(0.01		)%	(11		)			2
Ratio of allowance for loan losses to loans and leases, at period end	1.04		%	1.03		%	1.05		%	1					(1		)
										$			%		$			%
Classified loans	$	799		$	770		$	784		$	29		4	%	$	15		2	%
Nonperforming assets	237			253			292			(16		)	(6	)	(55		)	(19	)
Net loan and lease charge-offs (recoveries)	1			14			(1		)	(13		)	(93	)	2			NM
Provision for credit losses	10			21			(11		)	(11		)	(52	)	21			NM

Asset quality improved slightly when compared with the same prior year period. Nonperforming assets declined 19% from the third quarter of 2018, largely due to improvements in the oil and gas-related and commercial real estate portfolios. The ratio of nonaccrual loans and accruing loans past due 90 days or more to loans and leases was 0.49%, compared with 0.65% in the third quarter of 2018, reflecting a continued benign credit environment and disciplined underwriting.

The Bank recorded a $10 million provision for credit losses during the third quarter of 2019, compared with $21 million during the second quarter of 2019, and $(11) million for the third quarter of 2018. The allowance for loan losses was $510 million at September 30, 2019, compared with $480 million at September 30, 2018, or 1.04% and 1.05% of loans and leases, respectively. The increased allowance for credit losses from the prior year period is primarily due to loan growth and an increase in the qualitative portion of the allowance related to general economic indicators.



Loans and Leases
							3Q19 - 2Q19					3Q19 - 3Q18
(In millions)	3Q19		2Q19		3Q18		$			%		$		%
Loans held for sale	$	141	$	105	$	61	$	36		34	%	$	80	NM
Loans and leases:
Commercial	25,287		25,107		23,539		180			1		1,748		7
Commercial real estate	11,816		11,827		11,047		(11		)	—		769		7
Consumer	11,732		11,683		11,224		49			—		508		5
Loans and leases, net of unearned income and fees	48,835		48,617		45,810		218			—		3,025		7
Less allowance for loan losses	510		503		480		7			1		30		6
Loans held for investment, net of allowance	$	48,325	$	48,114	$	45,330	$	211		—		$	2,995	7

Loans and leases, net of unearned income and fees, increased $3.0 billion, or 7%, to $48.8 billion at September 30, 2019 from $45.8 billion at September 30, 2018. Within commercial loans, commercial and industrial loans increased $750 million and municipal loans increased $622 million. Term commercial real estate loans increased $717 million.

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ZIONS BANCORPORATION, N.A.

Press Release – Page 5

October 21, 2019

The growth in consumer loans was primarily due to a $467 million increase in 1-4 family residential loans. Unfunded lending commitments and letters of credit increased to $23.6 billion at September 30, 2019, compared with $21.9 billion at September 30, 2018.



Deposits and Borrowed Funds
							3Q19 - 2Q19					3Q19 - 3Q18
(In millions)	3Q19		2Q19		3Q18		$			%		$			%
Noninterest-bearing demand	$	23,770	$	22,947	$	24,067	$	823		4	%	$	(297	)	(1	)%
Interest-bearing:
Savings and money market	27,427		26,470		25,462		957			4		1,965			8
Time	4,942		4,915		4,256		27			1		686			16
Total deposits	$	56,139	$	54,332	$	53,785	$	1,807		3		$	2,354		4

Borrowed funds:
Federal funds purchased and other short-term borrowings	$	4,579	$	6,023	$	3,780	(1,444		)	(24	)	799			21
Long-term debt	$	1,242	$	1,236	$	879	6			—		363			41
Total borrowed funds	$	5,821	$	7,259	$	4,659	$	(1,438	)	(20	)	$	1,162		25

Total deposits increased by $2.4 billion, or 4%, to $56.1 billion as of September 30, 2019, while noninterest bearing deposits decreased $0.3 billion, or 1%, over the same period. Average total deposits increased to $55.3 billion for the third quarter of 2019, compared with $53.6 billion for the third quarter of 2018. Average noninterest bearing deposits declined 3% to $23.4 billion for the third quarter of 2019, compared with $24.0 billion for the third quarter of 2018, and were 42% and 45% of average total deposits, respectively, for the same periods.

Total borrowed funds increased $1.2 billion, or 25%, to $5.8 billion as of September 30, 2019. Average borrowed funds increased to $6.3 billion for the third quarter of 2019, compared with $4.5 billion for the third quarter of 2018. The increase in both end of period and average borrowed funds reflects recent loan growth, which has exceeded deposit growth.

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ZIONS BANCORPORATION, N.A.

Press Release – Page 6

October 21, 2019



Shareholders’ Equity
										3Q19 - 2Q19					3Q19 - 3Q18
(In millions)	3Q19			2Q19			3Q18			$			%		$			%
Shareholders’ equity:
Preferred stock	$	566		$	566		$	566		$	—		—	%	$	—		—	%
Common stock and additional paid-in capital	3,002			3,271			4,052			(269		)	(8	)	(1,050		)	(26)
Retained earnings	3,892			3,737			3,296			155			4		596			18
Accumulated other comprehensive income (loss)	49			25			(361		)	24			96		410			NM
Total shareholders' equity	$	7,509		$	7,599		$	7,553		$	(90	)	(1	)	$	(44	)	(1	)

Capital distributions:
Common dividends paid	$	60		$	54		$	58		6			11		2			3
Bank common stock repurchased	275			275			185			—			—		90			49
Total capital distributed to common shareholders	335			329			243			6			2		92			38

Capital distributed as a percentage of net earnings applicable to common shareholders	157		%	174		%	113		%

During the third quarter of 2019, the Bank’s common stock dividend was $0.34 per share, compared with $0.30 per share in the third quarter of 2018. Common stock repurchases during the current quarter totaled $275 million, or 6.6 million shares, which is equivalent to 3.8% of common stock outstanding as of June 30, 2019. During the last four quarters, the Bank repurchased $1.1 billion, or 23.1 million shares, of common stock which is equivalent to 12.0% of common stock outstanding as of September 30, 2018. As of September 30, 2019, the Bank had 29.3 million ZIONW warrants outstanding with a strike price of $34.14 per share that expire on May 22, 2020.

Common stock and additional paid-in capital decreased $1.1 billion, or 26%, from the third quarter of 2018, primarily due to the previously mentioned share repurchases. Accumulated other comprehensive income improved $410 million from a negative $361 million as of September 30, 2018, to $49 million as of September 30, 2019. The improvement was primarily a result of increases in the fair value of available-for-sale securities due to changes in interest rates.

Tangible book value per common share increased to $34.80 at September 30, 2019, compared with $31.08 at September 30, 2018, primarily due to a 11.3% decrease in common shares outstanding over the same period. Basel III common equity tier 1 (“CET1”) capital was $5.9 billion at September 30, 2019 and $6.3 billion at September 30, 2018. The estimated Basel III CET1 capital ratio was 10.4% at September 30, 2019 compared with 12.1% at September 30, 2018. For information on non-GAAP financial measures, see pages 16-19.

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ZIONS BANCORPORATION, N.A.

Press Release – Page 7

October 21, 2019

Supplemental Presentation and Conference Call

Zions has posted a supplemental presentation to its website, which will be used to discuss these third quarter results at 5:30 p.m. ET this afternoon (October 21, 2019). 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 1358841 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.

Additionally, Zions expects to host its biennial investor day on Thursday, February 6, 2020. Institutional investors and professional equity and fixed income analysts are encouraged to attend in person; retail investors and investment advisers are encouraged to join by webcast. The link to the webcast will be posted to zionsbancorporation.com in advance of the event.

About Zions Bancorporation, N.A.

Zions Bancorporation, N.A. is one of the nation's premier financial services companies with total assets of $70 billion. 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 national leader in Small Business Administration lending and public finance advisory services. The Bank has been the recipient of many local and national awards, primarily reflecting its strong customer service and products. The Bank has a strong commitment to the communities in which it operates. 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.

Forward-Looking Information

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 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 “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “would,” “targets,” “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 include, but are not limited to, the Bank’s ability to meet operating leverage goals; the rate of change of interest-sensitive assets and liabilities relative to changes in benchmark interest rates; the ability of the Bank to upgrade its core deposit system and implement new digital products in order to remain competitive; risks associated with information security, such

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ZIONS BANCORPORATION, N.A.

Press Release – Page 8

October 21, 2019

as systems breaches and failures; and legislative, regulatory and economic developments. These risks, as well as other factors, 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.

Except as required by law, Zions Bancorporation, N.A. specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

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ZIONS BANCORPORATION, N.A.

Press Release – Page 9

October 21, 2019

FINANCIAL HIGHLIGHTS

(Unaudited)



	Three Months Ended
(In millions, except share, per share, and ratio data)	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
BALANCE SHEET ¹
Loans held for investment, net of allowance	$	48,325		$	48,114		$	47,109		$	46,219		$	45,330
Total assets	70,361			70,065			69,195			68,746			66,731
Deposits	56,139			54,332			54,535			54,101			53,785
Total shareholders’ equity	7,509			7,599			7,588			7,578			7,553
STATEMENT OF INCOME
Net earnings applicable to common shareholders	$	214		$	189		$	205		$	217		$	215
Net interest income	567			569			576			576			565
Taxable-equivalent net interest income ²	574			576			582			582			570
Total noninterest income	146			132			132			140			136
Total noninterest expense	415			424			430			420			420
Adjusted pre-provision net revenue ²	309			294			285			305			291
Provision for credit losses	10			21			4			6			(11		)
SHARE AND PER COMMON SHARE AMOUNTS
Net earnings per diluted common share	$	1.17		$	0.99		$	1.04		$	1.08		$	1.04
Dividends	0.34			0.30			0.30			0.30			0.30
Book value per common share ¹	40.75			39.75			38.47			37.39			36.36
Tangible book value per common share ^{1, 2}	34.80			34.02			32.92			31.97			31.08
Weighted average share price	43.04			46.11			47.71			46.61			52.80
Weighted average diluted common shares outstanding (in thousands)	181,870			189,098			195,241			199,048			205,765
Common shares outstanding (in thousands) ¹	170,373			176,935			182,513			187,554			192,169
SELECTED RATIOS AND OTHER DATA
Return on average assets	1.25		%	1.14		%	1.26		%	1.34		%	1.33		%
Return on average common equity	12.1		%	10.8		%	11.9		%	12.4		%	12.1		%
Return on average tangible common equity ²	14.2		%	12.7		%	13.9		%	14.5		%	14.2		%
Net interest margin	3.48		%	3.54		%	3.68		%	3.67		%	3.63		%
Cost of total deposits, annualized	0.50		%	0.49		%	0.43		%	0.35		%	0.28		%
Efficiency ratio ²	57.3		%	59.0		%	60.2		%	57.8		%	58.8		%
Effective tax rate	22.9		%	22.7		%	22.3		%	22.1		%	23.6		%
Ratio of nonperforming assets to loans and leases and other real estate owned	0.48		%	0.52		%	0.50		%	0.55		%	0.64		%
Annualized ratio of net loan and lease charge-offs (recoveries) to average loans	0.01		%	0.12		%	—		%	(0.07		)%	(0.01		)%
Ratio of total allowance for credit losses to loans and leases outstanding ¹	1.17		%	1.16		%	1.17		%	1.18		%	1.17		%
Full-time equivalent employees	10,255			10,326			10,204			10,201			10,143
CAPITAL RATIOS AND DATA ¹
Common equity tier 1 capital	$	5,871		$	5,987		$	6,124		$	6,245		$	6,331
Risk-weighted assets	56,307			55,499			54,404			53,591			52,493
Tangible common equity ratio	8.5		%	8.7		%	8.8		%	8.9		%	9.1		%
Common equity tier 1 capital ratio	10.4		%	10.8		%	11.3		%	11.7		%	12.1		%
Tier 1 leverage ratio	9.3		%	9.5		%	9.9		%	10.3		%	10.5		%
Tier 1 risk-based capital ratio	11.4		%	11.8		%	12.3		%	12.7		%	13.1		%
Total risk-based capital ratio	12.6		%	13.0		%	13.5		%	13.9		%	14.6		%


¹	At period end.


²	For information on non-GAAP financial measures, see pages 16-19.

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ZIONS BANCORPORATION, N.A.

Press Release – Page 10

October 21, 2019

CONSOLIDATED BALANCE SHEETS

(Unaudited)



(In millions, shares in thousands)	September 30, 2019		June 30, 2019		March 31, 2019			December 31, 2018			September 30, 2018
	(Unaudited)		(Unaudited)		(Unaudited)						(Unaudited)
ASSETS
Cash and due from banks	$	796	$	538	$	536		$	614		$	517
Money market investments:
Interest-bearing deposits	1,149		634		702			619			590
Federal funds sold and security resell agreements	504		620		438			1,461			560
Investment securities:
Held-to-maturity¹, at amortized cost	658		695		764			774			751
Available-for-sale, at fair value	14,033		14,672		14,904			14,737			14,625
Trading account, at fair value	280		148		316			106			176
Total investment securities	14,971		15,515		15,984			15,617			15,552
Loans held for sale	141		105		69			93			61
Loans and leases, net of unearned income and fees	48,835		48,617		47,606			46,714			45,810
Less allowance for loan losses	510		503		497			495			480
Loans held for investment, net of allowance	48,325		48,114		47,109			46,219			45,330
Other noninterest-bearing investments	982		1,056		993			1,046			1,027
Premises, equipment and software, net	1,146		1,133		1,125			1,124			1,111
Goodwill and intangibles	1,014		1,014		1,014			1,015			1,015
Other real estate owned	4		5		6			4			4
Other assets	1,329		1,331		1,219			934			964
Total assets	$	70,361	$	70,065	$	69,195		$	68,746		$	66,731
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand	$	23,770	$	22,947	$	23,259		$	23,645		$	24,067
Interest-bearing:
Savings and money market	27,427		26,470		26,348			26,120			25,462
Time	4,942		4,915		4,928			4,336			4,256
Total deposits	56,139		54,332		54,535			54,101			53,785
Federal funds purchased and other short-term borrowings	4,579		6,023		4,944			5,653			3,780
Long-term debt	1,242		1,236		1,228			724			879
Reserve for unfunded lending commitments	62		60		59			57			58
Other liabilities	830		815		841			633			676
Total liabilities	62,852		62,466		61,607			61,168			59,178
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	3,002		3,271		3,541			3,806			4,052
Retained earnings	3,892		3,737		3,603			3,456			3,296
Accumulated other comprehensive income (loss)	49		25		(122		)	(250		)	(361		)
Total shareholders’ equity	7,509		7,599		7,588			7,578			7,553
Total liabilities and shareholders’ equity	$	70,361	$	70,065	$	69,195		$	68,746		$	66,731
¹ Held-to-maturity (approximate fair value)	662		698		762			767			734
² Common stock (issued and outstanding)	170,373		176,935		182,513			187,554			192,169

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ZIONS BANCORPORATION, N.A.

Press Release – Page 11

October 21, 2019

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)



	Three Months Ended
(In millions, except share and per share amounts)	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Interest income:
Interest and fees on loans	$	581		$	581		$	570		$	555		$	537
Interest on money market investments	8			8			9			8			8
Interest on securities	88			95			96			93			86
Total interest income	677			684			675			656			631
Interest expense:
Interest on deposits	69			66			57			48			38
Interest on short- and long-term borrowings	41			49			42			32			28
Total interest expense	110			115			99			80			66
Net interest income	567			569			576			576			565
Provision for credit losses:
Provision for loan losses	8			20			2			7			(11		)
Provision for unfunded lending commitments	2			1			2			(1		)	—
Total provision for credit losses	10			21			4			6			(11		)
Net interest income after provision for credit losses	557			548			572			570			576
Noninterest income:
Commercial account fees	31			30			30			29			31
Card fees	24			23			22			25			24
Retail and business banking fees	20			20			18			20			19
Loan-related fees and income	21			17			16			20			17
Capital markets and foreign exchange fees	23			20			17			16			14
Wealth management and trust fees	16			15			14			14			14
Other customer-related fees	5			5			5			7			7
Customer-related fees	140			130			122			131			126
Dividends and other income	4			5			9			7			11
Securities gains (losses), net	2			(3		)	1			2			(1		)
Total noninterest income	146			132			132			140			136
Noninterest expense:
Salaries and employee benefits	273			274			287			270			264
Occupancy, net	34			32			33			35			33
Furniture, equipment and software, net	34			35			32			31			30
Other real estate expense, net	(2		)	—			(1		)	—			1
Credit-related expense	2			8			6			6			5
Professional and legal services	10			13			11			15			12
Advertising	6			5			5			6			8
FDIC premiums	7			6			6			6			18
Other	51			51			51			51			49
Total noninterest expense	415			424			430			420			420
Income before income taxes	288			256			274			290			292
Income taxes	66			58			61			64			69
Net income	222			198			213			226			223
Preferred stock dividends	(8		)	(9		)	(8		)	(9		)	(8		)
Net earnings applicable to common shareholders	$	214		$	189		$	205		$	217		$	215
Weighted average common shares outstanding during the period:
Basic shares (in thousands)	173,160			179,156			184,767			189,169			192,973
Diluted shares (in thousands)	181,870			189,098			195,241			199,048			205,765
Net earnings per common share:
Basic	$	1.23		$	1.05		$	1.10		$	1.14		$	1.11
Diluted	1.17			0.99			1.04			1.08			1.04

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ZIONS BANCORPORATION, N.A.

Press Release – Page 12

October 21, 2019

Loan Balances Held for Investment by Portfolio Type

(Unaudited)



(In millions)	September 30, 2019		June 30, 2019		March 31, 2019		December 31, 2018		September 30, 2018
Commercial:
Commercial and industrial	$	14,846	$	14,883	$	14,758	$	14,513	$	14,096
Leasing	332		337		312		327		332
Owner occupied	7,924		7,828		7,754		7,661		7,548
Municipal	2,185		2,059		1,774		1,661		1,563
Total commercial	25,287		25,107		24,598		24,162		23,539
Commercial real estate:
Construction and land development	2,347		2,609		2,343		2,186		2,295
Term	9,469		9,218		9,187		8,939		8,752
Total commercial real estate	11,816		11,827		11,530		11,125		11,047
Consumer:
Home equity credit line	2,930		2,929		2,884		2,937		2,884
1-4 family residential	7,506		7,440		7,294		7,176		7,039
Construction and other consumer real estate	637		644		636		643		644
Bankcard and other revolving plans	494		502		489		491		483
Other	165		168		175		180		174
Total consumer	11,732		11,683		11,478		11,427		11,224
Loans and leases, net of unearned income and fees	$	48,835	$	48,617	$	47,606	$	46,714	$	45,810

Nonperforming Assets

(Unaudited)



(In millions)	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018

Nonaccrual loans¹	$	233		$	248		$	234		$	252		$	288
Other real estate owned	4			5			6			4			4
Total nonperforming assets	$	237		$	253		$	240		$	256		$	292
Ratio of nonperforming assets to loans¹ and leases and other real estate owned	0.48		%	0.52		%	0.50		%	0.55		%	0.64		%
Accruing loans past due 90 days or more	$	6		$	17		$	8		$	10		$	12
Ratio of accruing loans past due 90 days or more to loans¹ and leases	0.01		%	0.03		%	0.02		%	0.02		%	0.03		%
Nonaccrual loans and accruing loans past due 90 days or more	$	239		$	265		$	242		$	262		$	300
Ratio of nonaccrual loans and accruing loans past due 90 days or more to loans¹ and leases	0.49		%	0.54		%	0.51		%	0.56		%	0.65		%
Accruing loans past due 30-89 days	$	84		$	99		$	142		$	65		$	87
Restructured loans included in nonaccrual loans	92			79			76			90			90
Restructured loans on accrual	90			97			98			112			114
Classified loans	799			770			729			698			784

¹Includes loans held for sale.

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ZIONS BANCORPORATION, N.A.

Press Release – Page 13

October 21, 2019

Allowance for Credit Losses

(Unaudited)



	Three Months Ended
(In millions)	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Allowance for Loan Losses
Balance at beginning of period	$	503		$	497		$	495		$	480		$	490
Provision for loan losses	8			20			2			7			(11		)
Loan and lease charge-offs	11			23			12			13			17
Less: Recoveries	10			9			12			21			18
Net loan and lease charge-offs (recoveries)	1			14			—			(8		)	(1		)
Balance at end of period	$	510		$	503		$	497		$	495		$	480
Ratio of allowance for loan losses to loans¹ and leases, at period end	1.04		%	1.03		%	1.04		%	1.06		%	1.05		%
Ratio of allowance for loan losses to nonaccrual loans¹at period end	219		%	203		%	212		%	201		%	167		%
Annualized ratio of net loan and lease charge-offs (recoveries) to average loans	0.01		%	0.12		%	—		%	(0.07		)%	(0.01		)%

Reserve for Unfunded Lending Commitments
Balance at beginning of period	$	60		$	59		$	57		$	58		$	58
Provision for unfunded lending commitments	2			1			2			(1		)	—
Balance at end of period	$	62		$	60		$	59		$	57		$	58

Allowance for Credit Losses
Allowance for loan losses	$	510		$	503		$	497		$	495		$	480
Reserve for unfunded lending commitments	62			60			59			57			58
Total allowance for credit losses	$	572		$	563		$	556		$	552		$	538
Ratio of total allowance for credit losses to loans¹ and leases outstanding, at period end	1.17		%	1.16		%	1.17		%	1.18		%	1.17		%

¹Does not include loans held for sale.

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ZIONS BANCORPORATION, N.A.

Press Release – Page 14

October 21, 2019

Nonaccrual Loans by Portfolio Type

(Unaudited)



(In millions)	September 30, 2019		June 30, 2019		March 31, 2019		December 31, 2018		September 30, 2018

Loans held for sale	$	—	$	—	$	—	$	6	$	—
Commercial:
Commercial and industrial	$	97	$	85	$	72	$	82	$	112
Leasing	1		1		1		2		2
Owner occupied	49		69		69		67		66
Municipal	—		1		1		1		1
Total commercial	147		156		143		152		181
Commercial real estate:
Construction and land development	—		1		1		—		—
Term	29		31		32		38		46
Total commercial real estate	29		32		33		38		46
Consumer:
Home equity credit line	12		12		11		13		13
1-4 family residential	44		44		45		42		47
Construction and other consumer real estate	1		4		2		—		—
Bankcard and other revolving plans	—		—		—		1		1
Other	—		—		—		—		—
Total consumer	57		60		58		56		61
Total nonaccrual loans	$	233	$	248	$	234	$	252	$	288

Net Charge-Offs by Portfolio Type

(Unaudited)



(In millions)	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Commercial:
Commercial and industrial	$	—		$	13		$	1		$	(10	)	$	(3	)
Leasing	—			—			—			—			—
Owner occupied	(1		)	—			1			—			(1		)
Municipal	—			—			—			—			—
Total commercial	(1		)	13			2			(10		)	(4		)
Commercial real estate:
Construction and land development	—			—			—			(1		)	(2		)
Term	(1		)	—			(2		)	—			4
Total commercial real estate	(1		)	—			(2		)	(1		)	2
Consumer:
Home equity credit line	—			—			(1		)	—			(1		)
1-4 family residential	(1		)	(1		)	(1		)	—			—
Construction and other consumer real estate	—			—			—			—			—
Bankcard and other revolving plans	3			1			1			2			2
Other	1			1			1			1			—
Total consumer loans	3			1			—			3			1
Total net charge-offs (recoveries)	$	1		$	14		$	—		$	(8	)	$	(1	)

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ZIONS BANCORPORATION, N.A.

Press Release – Page 15

October 21, 2019

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Unaudited)



	Three Months Ended
	September 30, 2019					June 30, 2019					September 30, 2018
(In millions)	Average balance			Average yield/rate ¹		Average balance			Average yield/rate ¹		Average balance			Average yield/rate ¹
ASSETS
Money market investments	$	1,413		2.41	%	$	1,261		2.64	%	$	1,327		2.25	%
Securities:
Held-to-maturity	693			3.66	%	687			3.69	%	848			3.52	%
Available-for-sale	14,323			2.29	%	14,750			2.43	%	14,592			2.20	%
Trading account	135			4.50	%	172			4.48	%	65			3.43	%
Total securities	15,151			2.37	%	15,609			2.51	%	15,505			2.28	%
Loans held for sale	89			3.67	%	71			2.18	%	53			4.82	%
Loans held for investment:²
Commercial	25,284			4.83	%	24,977			4.94	%	23,263			4.88	%
Commercial real estate	11,849			5.10	%	11,777			5.22	%	11,009			5.01	%
Consumer	11,695			4.22	%	11,570			4.28	%	11,096			4.07	%
Total loans held for investment	48,828			4.75	%	48,324			4.85	%	45,368			4.71	%
Total interest-earning assets	65,481			4.15	%	65,265			4.24	%	62,253			4.06	%
Cash and due from banks	616					592					516
Allowance for loan losses	(502		)			(496		)			(489		)
Goodwill and intangibles	1,014					1,014					1,015
Other assets	3,643					3,480					3,079
Total assets	$	70,252				$	69,855				$	66,374
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
Savings and money market	$	26,962		0.65	%	$	26,262		0.63	%	$	25,483		0.36	%
Time	4,963			1.99	%	5,025			2.02	%	4,118			1.49	%
Total interest-bearing deposits	31,925			0.86	%	31,287			0.85	%	29,601			0.52	%
Borrowed funds:
Federal funds purchased and other short-term borrowings	5,099			2.29	%	5,795			2.53	%	3,917			2.09	%
Long-term debt	1,239			3.65	%	1,230			3.84	%	572			4.91	%
Total borrowed funds	6,338			2.56	%	7,025			2.76	%	4,489			2.45	%
Total interest-bearing funds	38,263			1.14	%	38,312			1.20	%	34,090			0.77	%
Noninterest-bearing deposits	23,359					23,060					23,974
Other liabilities	1,062					929					720
Total liabilities	62,684					62,301					58,784
Shareholders’ equity:
Preferred equity	566					566					566
Common equity	7,002					6,988					7,024
Total shareholders’ equity	7,568					7,554					7,590
Total liabilities and shareholders’ equity	$	70,252				$	69,855				$	66,374
Spread on average interest-bearing funds				3.01	%				3.04	%				3.29	%
Impact of net noninterest-bearing sources of funds				0.47	%				0.50	%				0.34	%
Net interest margin				3.48	%				3.54	%				3.63	%
Memo: total cost of deposits				0.50	%				0.49	%				0.28	%
Memo: total deposits and interest-bearing liabilities	61,622			0.71	%	61,372			0.75	%	58,064			0.45	%

¹ Rates are calculated using amounts in thousands and taxable-equivalent rates used where applicable.

² Net of unearned income and fees, net of related costs. Loans include nonaccrual and restructured loans.

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ZIONS BANCORPORATION, N.A.

Press Release – Page 16

October 21, 2019

GAAP to Non-GAAP Reconciliations

(Unaudited)

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. The Bank considers 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 management to assess the performance and financial position of the Bank and for presentations of Bank performance to investors. The Bank further believes that presenting these non-GAAP financial measures will permit investors to assess the performance of the Bank on the same basis as that applied by management.

Non-GAAP financial measures have inherent limitations, and are not required to be uniformly applied by individual entities. Although non-GAAP financial measures are frequently used by stakeholders to evaluate a company, they have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results reported under GAAP.

The following are non-GAAP financial measures presented in this press release and a discussion of the reasons for which management uses these non-GAAP measures:

Tangible Book Value per Common Share – this schedule also includes “tangible common equity.” Tangible book value per common share is a non-GAAP financial measure that management believes provides additional useful information about the level of tangible equity in relation to outstanding shares of common stock. Management believes the use of ratios that utilize tangible equity provides additional useful information to management and others about capital adequacy because they present measures of those assets that can generate income.



(In millions, except shares and per share amounts)		September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Tangible Book Value per Common Share
Total shareholders’ equity (GAAP)		$	7,509		$	7,599		$	7,588		$	7,578		$	7,553
Preferred stock		(566		)	(566		)	(566		)	(566		)	(566		)
Goodwill and intangibles		(1,014		)	(1,014		)	(1,014		)	(1,015		)	(1,015		)
Tangible common equity (non-GAAP)	(a)	$	5,929		$	6,019		$	6,008		$	5,997		$	5,972
Common shares outstanding (in thousands)	(b)	170,373			176,935			182,513			187,554			192,169
Tangible book value per common share (non-GAAP)	(a/b)	$	34.80		$	34.02		$	32.92		$	31.97		$	31.08

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ZIONS BANCORPORATION, N.A.

Press Release – Page 17

October 21, 2019

GAAP to Non-GAAP Reconciliations

(Unaudited)

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



		Three Months Ended
(Dollar amounts in millions)		September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Return on Average Tangible Common Equity
Net earnings applicable to common shareholders (GAAP)		$	214		$	189		$	205		$	217		$	215
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)	$	214		$	189		$	205		$	217		$	215
Average common equity (GAAP)		$	7,002		$	6,988		$	7,005		$	6,938		$	7,024
Average goodwill and intangibles		(1,014		)	(1,014		)	(1,014		)	(1,015		)	(1,015		)
Average tangible common equity (non-GAAP)	(b)	$	5,988		$	5,974		$	5,991		$	5,923		$	6,009
Number of days in quarter	(c)	92			91			90			92			92
Number of days in year	(d)	365			365			365			365			365
Return on average tangible common equity (non-GAAP)	(a/b/c)*d	14.2		%	12.7		%	13.9		%	14.5		%	14.2		%

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ZIONS BANCORPORATION, N.A.

Press Release – Page 18

October 21, 2019

GAAP to Non-GAAP Reconciliations

(Unaudited)

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. Management makes adjustments to exclude certain items as identified in the subsequent schedules which it believes allows for more consistent comparability among periods. Management believes the efficiency ratio provides useful information regarding the cost of generating revenue. Adjusted noninterest expense provides a measure as to how well the Bank is managing its expenses, and adjusted PPNR enables management and others to assess the Bank’s ability to generate capital to cover credit losses through a credit cycle. Taxable-equivalent net interest income allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources.

Adjusted Pre-Provision Net Revenue per Common Share – this schedule uses “adjusted PPNR” as calculated in the efficiency ratio, which is divided by the weighted average diluted common shares for the period. As mentioned previously, Management believes that adjusted PPNR enables management and others to assess the Bank’s ability to generate capital to cover credit losses through a credit cycle. Dividing this amount by the weighted average diluted common shares outstanding provides a shareholder’s perspective of PPNR growth.



		Three Months Ended
(In millions)		September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Efficiency Ratio
Noninterest expense (GAAP)	(a)	$	415		$	424		$	430		$	420		$	420
Adjustments:
Severance costs		2			1						2			2
Other real estate expense, net		(2		)	—			(1		)	—			1
Restructuring costs		—			—			—			—			1
Pension termination-related expense		—			—			—			—			—
Total adjustments	(b)	—			1			(1		)	2			4
Adjusted noninterest expense (non-GAAP)	(a-b)=(c)	$	415		$	423		$	431		$	418		$	416
Net interest income (GAAP)	(d)	$	567		$	569		$	576		$	576		$	565
Fully taxable-equivalent adjustments	(e)	7			7			6			6			5
Taxable-equivalent net interest income (non-GAAP)	(d+e)=(f)	574			576			582			582			570
Noninterest income (GAAP)	(g)	146			132			132			140			136
Combined income (non-GAAP)	(f+g)=(h)	720			708			714			722			706
Adjustments:
Fair value and nonhedge derivative loss		(6		)	(6		)	(3		)	(3		)	—
Securities gains (losses), net		2			(3		)	1			2			(1		)
Total adjustments	(i)	(4		)	(9		)	(2		)	(1		)	(1		)
Adjusted taxable-equivalent revenue (non-GAAP)	(h-i)=(j)	$	724		$	717		$	716		$	723		$	707
Pre-provision net revenue (PPNR) (non-GAAP)	(h)-(a)	$	305		$	284		$	284		$	302		$	286
Adjusted PPNR (non-GAAP)	(j-c)=(k)	309			294			285			305			291
Efficiency ratio (non-GAAP)	(c/j)	57.3		%	59.0		%	60.2		%	57.8		%	58.8		%

Adjusted PPNR per common share
Adjusted PPNR (non-GAAP)	(k)	309			294			285			305			291
Weighted average diluted shares outstanding (in thousands)	(l)	181,870			189,098			195,241			199,048			205,765
Adjusted PPNR per common share (non-GAAP)	(k)/(l)	1.70			1.55			1.46			1.53			1.41

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ZIONS BANCORPORATION, N.A.

Press Release – Page 19

October 21, 2019



		Nine Months Ended
(In millions)		September 30, 2019			September 30, 2018
Efficiency Ratio
Noninterest expense (GAAP)	(a)	$	1,270		$	1,259
Adjustments:
Severance costs		4			1
Other real estate expense		(3		)	1
Amortization of core deposit and other intangibles		—			1
Restructuring costs		—			1
Pension termination-related expense		—			—
Total adjustments	(b)	1			4
Adjusted noninterest expense (non-GAAP)	(a-b)=(c)	$	1,269		$	1,255
Net interest income (GAAP)	(d)	$	1,712		$	1,654
Fully taxable-equivalent adjustments	(e)	20			16
Taxable-equivalent net interest income (non-GAAP)	(d+e)=(f)	1,732			1,670
Noninterest income (GAAP)	(g)	410			412
Combined income (non-GAAP)	(f+g)=(h)	2,142			2,082
Adjustments:
Fair value and nonhedge derivative income (loss)		(15		)	2
Securities gains (losses), net		—			(1		)
Total adjustments	(i)	(15		)	1
Adjusted taxable-equivalent revenue (non-GAAP)	(h-i)=(j)	$	2,157		$	2,081
Pre-provision net revenue (PPNR)	(h)-(a)	$	872		$	823
Adjusted PPNR (non-GAAP)	(j-c)=(k)	888			826
Efficiency ratio (non-GAAP)	(c/j)	58.8		%	60.3		%

Adjusted PPNR per common share
Adjusted PPNR (non-GAAP)	(k)	888			826
Weighted average diluted shares outstanding (in thousands)	(l)	188,895			208,657
Adjusted PPNR per common share (non-GAAP)	(k)/(l)	4.70			3.96

# # #

Document and Entity Information Document	Oct. 21, 2019
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Oct. 21, 2019
Entity Registrant Name	ZIONS BANCORPORATION, NATIONAL ASSOCIATION
Entity Incorporation, State or Country Code	X1
Entity File Number	001-12307
Entity Tax Identification Number	87-0189025
Entity Address, Address Line One	One South Main,
Entity Address, City or Town	Salt Lake City,
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84133
City Area Code	801
Local Phone Number	844-7637
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0000109380
NASDAQ - ALL MARKETS [Member] \| Common Stock [Member]
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.001
Trading Symbol	ZION
Security Exchange Name	NASDAQ
NASDAQ - ALL MARKETS [Member] \| Warrant [Member]
Entity Information [Line Items]
Title of 12(b) Security	Warrants to Purchase Common stock (expiring May 22, 2020)
Trading Symbol	ZIONW
Security Exchange Name	NASDAQ
NEW YORK STOCK EXCHANGE, INC. [Member] \| Series A Preferred Stock [Member]
Entity Information [Line Items]
Title of 12(b) Security	Series A Floating-Rate Non-Cumulative Perpetual Preferred Stock
Trading Symbol	ZB/A
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. [Member] \| Series G Preferred Stock [Member]
Entity Information [Line Items]
Title of 12(b) Security	Series G Fixed/Floating-Rate Non-Cumulative Perpetual Preferred Stock
Trading Symbol	ZB/G
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. [Member] \| Series H Preferred Stock [Member]
Entity Information [Line Items]
Title of 12(b) Security	Series H 5.75% Non-Cumulative Perpetual Preferred Stock
Trading Symbol	ZB/H
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. [Member] \| Senior Subordinated Notes [Member]
Entity Information [Line Items]
Title of 12(b) Security	6.95% Fixed-to-Floating Rate Subordinated Notes due September 15, 2028
Trading Symbol	ZBK
Security Exchange Name	NYSE