Zions Bancorporation

10/18/2021 | Press release | Distributed by Public on 10/18/2021 14:10

compared with 3Q20 Net Earnings of $167 million, diluted EPS of $1.01,and 2Q21 Net Earnings of $345 million, diluted EPS of $2.08 - Form 8-K

compared with 3Q20 Net Earnings of $167 million, diluted EPS of $1.01,
and 2Q21 Net Earnings of $345 million, diluted EPS of $2.08

THIRD QUARTER RESULTS
$1.45 $234 million 2.68% 10.9%
Net earningsper diluted common share
Net Earnings Net interest margin ("NIM") Common Equity
Tier 1
THIRD QUARTER HIGHLIGHTS¹
Net Interest Income and NIM
Net interest income remained stable at $555 million
NIM was 2.68%, compared with 3.06%, and continued to be significantly impacted by low interest rates and higher average money market balances of $12.7 billion, compared with $3.1 billion
Operating Performance
Pre-provision net revenue ("PPNR") was $272 million, down 2%, and adjusted PPNR² was $290 million, up 9%
Noninterest expense was $429 million, down 3%, and adjusted noninterest expense² was $432 million, down 2%
The efficiency ratio² was 59.8%, compared with 62.2%
Loans and Credit Quality
Loans and leases were $50.7 billion, down $4.1 billion, or 7%; excluding PPP, loans and leases were $47.6 billion, down $0.3 billion, or 1%
Nonperforming assets3 were $324 million, or 0.7%, of loans (ex-PPP), compared with $372 million, or 0.8%, of loans (ex-PPP)
The provision for credit losses was a negative $46 million, compared with a positive $55 million
The allowance for credit losses was 1.1% of loans (ex-PPP), compared with 1.9% of loans (ex-PPP)
Capital
The CET1 capital ratio was 10.9%, compared with 10.4%
Common stock repurchases of $325 million, 5.8 million shares, or 3.6% of shares outstanding as of June 30, 2021
Notable items
Net unrealized loss related to SBIC investment in Recursion Pharmaceuticals, Inc. of $24 million ($28 million fair value adjustment less $4 million reversal of an accrued success fee), compared with a net unrealized gain of $54 million ($63 million fair value adjustment less $9 million success fee accrual) in second quarter of 2021
About 19,000 PPP loans were forgiven by the SBA, totaling $1.5 billion, which contributed $41 million of interest income through accelerated recognition of net unamortized deferred fees
Deposits were $77.9 billion, up $10.8 billion, or 16%, resulting in a loan-to-deposit ratio of 65%
CEO COMMENTARY
Harris H. Simmons, Chairman and CEO of Zions Bancorporation, commented, "We are pleased with the quarter's financial results. Following several quarters of weak loan demand, we're particularly encouraged by the loan growth we reported during the quarter, which, excluding PPP loans, was 5.6% on an annualized basis. We also reported continued strong deposit growth at an annualized pace of 9.3%. Credit outcomes remained strong, with net recoveries at an annualized 0.01% of total loans, and one of the lowest gross charge-off rates in a number of years. These positive outcomes, together with an improving economic outlook, produced a $46 million reversal of loss reserves into income."

Mr. Simmons continued, "We're optimistic that, despite lingering supply chain issues and a tight labor market, the economy seems poised for continued growth over the next several quarters as, thanks to a great deal of government stimulus, consumers and most businesses are emerging from the pandemic in relatively strong condition."
OPERATING PERFORMANCE3
1 Comparisons noted in the bullet points are calculated for the current quarter versus the same prior-year period, unless otherwise specified.
2 Adjusted PPNR for the third quarter of 2020 included a one-time $30 million charitable contribution, and when excluded, PPNR was $307 million and adjusted PPNR was $297 million. For information on non-GAAP financial measures, see pages 15-17.
3 Does not include banking premises held for sale.
4 EPS calculations assume a 24.5% statutory tax rate.


ZIONS BANCORPORATION, N.A.
Press Release - Page 2
October 18, 2021
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 considered not meaningful ("NM") as they are generally reflective of a low initial starting point.
RESULTS OF OPERATIONS
Net Interest Income and Margin
3Q21 - 2Q21 3Q21 - 3Q20
(In millions) 3Q21 2Q21 3Q20 $ % $ %
Interest and fees on loans $ 484 $ 492 $ 505 $ (8) (2) % $ (21) (4) %
Interest on money market investments 7 4 2 3 75 5 NM
Interest on securities 78 74 74 4 5 4 5
Total interest income
569 570 581 (1) - (12) (2)
Interest on deposits 7 7 18 - - (11) (61)
Interest on short- and long-term borrowings 7 8 8 (1) (13) (1) (13)
Total interest expense
14 15 26 (1) (7) (12) (46)
Net interest income
$ 555 $ 555 $ 555 $ - - $ - -
bps bps
Yield on interest-earning assets1
2.75 % 2.86 % 3.20 % (11) (45)
Rate paid on total deposits and interest-bearing liabilities1
0.07 % 0.08 % 0.15 % (1) (8)
Cost of total deposits1
0.03 % 0.04 % 0.11 % (1) (8)
Net interest margin1
2.68 % 2.79 % 3.06 % (11) (38)
1 Rates are calculated using amounts in thousands and taxable-equivalent rates are used where applicable.
Net interest income remained stable at $555 million in the third quarter of 2021. Total interest income decreased $12 million, or 2%, primarily due to a $21 million decrease in interest and fees on loans, partially offset by a $5 million increase in interest on money market investments, and a $4 million increase in interest on securities. The decrease in total interest income was primarily attributable to the low interest rate environment. Interest expense decreased $12 million, or 46%, largely due to an $11 million decline in interest paid on deposits, which was also attributable to low interest rates.
The net interest margin was 2.68%, compared with 3.06% in the same prior year period. The yield on average interest-earning assets was 2.75% in the third quarter of 2021, a decrease of 45 basis points, compared with the same prior year quarter. Average money market investments, including short-term deposits held at the Federal Reserve, increased to 15.3% of average interest-earning assets, compared with 4.3% in the same prior year period. This increase had a significant dilutive effect on the net interest margin.
Average interest-earning assets included $3.8 billion of Small Business Administration ("SBA") Paycheck Protection Program ("PPP"). During the third quarter of 2021, about 19,000 PPP loans, totaling $1.5 billion, received forgiveness by the SBA. Total interest income from PPP loans was $63 million during the third quarter of 2021, of which, $41 million was related to accelerated recognition of net unamortized deferred fees on these loans due to forgiveness. At September 30, 2021, unamortized net origination fees related to the PPP loans totaled approximately $83 million.
The yield on loans increased 14 basis points from the third quarter of 2020, primarily due to accelerated amortization of deferred fees on forgiven PPP loans. Excluding PPP loans, the yield on loans decreased 18 basis points from the third quarter of 2020. The yield on non-PPP loans originated during the third quarter of 2021 was moderately less than the yield on loans maturing or otherwise paying down. The yield on securities decreased 41 basis points from the third quarter of 2020, primarily due to lower yields on re-investment of principal payments and other purchases throughout the previous four quarters.
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ZIONS BANCORPORATION, N.A.
Press Release - Page 3
October 18, 2021
The annualized cost of total deposits for the third quarter of 2021 was 0.03%, compared with 0.11% for the third quarter of 2020. The rate paid on total deposits and interest-bearing liabilities was 0.07%, a decrease from 0.15% during the third quarter of 2020, which was primarily due to low deposit rates and strong noninterest bearing deposit growth. Average noninterest bearing deposits as a percentage of total deposits were 50% for the third quarter of 2021, compared with 46% for the same prior year period.
Noninterest Income
3Q21 - 2Q21 3Q21 - 3Q20
(In millions) 3Q21 2Q21 3Q20 $ % $ %
Commercial account fees $ 34 $ 34 $ 32 $ - - % $ 2 6 %
Card fees 25 24 21 1 4 4 19
Retail and business banking fees 20 18 17 2 11 3 18
Loan-related fees and income 27 21 32 6 29 (5) (16)
Capital markets and foreign exchange fees 17 17 16 - - 1 6
Wealth management fees 13 12 10 1 8 3 30
Other customer-related fees 15 13 11 2 15 4 36
Customer-related fees
151 139 139 12 9 12 9
Fair value and nonhedge derivative income (loss) 2 (5) 8 7 NM (6) (75)
Dividends and other income 9 8 6 1 13 3 50
Securities gains (losses), net (23) 63 4 (86) NM (27) NM
Total noninterest income
$ 139 $ 205 $ 157 $ (66) (32) $ (18) (11)

Total customer-related fees increased $12 million to $151 million from the prior year quarter, primarily due to improved customer transaction volume, new client activity, and deepening of existing client relationships. Loan-related fees and income decreased $5 million, primarily due to a decline in our residential mortgage originations held for sale.
Securities gains and losses decreased $27 million from the third quarter of 2020, largely as a result of a $28 million unrealized loss (compared with a $63 million unrealized gain in the second quarter of 2021) relating to our SBIC investment in Recursion Pharmaceuticals, Inc. This investment will continue to be marked-to-market until the SBIC fund manager divests of the shares, which are subject to a minimum 180-day lock-up period from the initial offering in April 2021. During the second quarter of 2021, we accrued an associated success fee of $9 million in other noninterest expense, and reversed $4 million of this accrual during the current quarter based on the fair value of the investment.
We recognized a $2 million gain related to a credit valuation adjustment ("CVA") on client-related interest rate swaps, compared with a $8 million CVA gain in the third quarter of 2020. The CVA gain for the current quarter was primarily due to improvements in the credit quality of our clients with interest rate swaps, as well as changes in interest rates, which decreased the value of, and our credit exposure to, the client-related interest rate swaps.
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ZIONS BANCORPORATION, N.A.
Press Release - Page 4
October 18, 2021
Noninterest Expense
3Q21 - 2Q21 3Q21 - 3Q20
(In millions) 3Q21 2Q21 3Q20 $ % $ %
Salaries and employee benefits $ 285 $ 272 $ 269 $ 13 5 % $ 16 6 %
Occupancy, net 33 33 33 - - - -
Furniture, equipment and software, net 31 32 32 (1) (3) (1) (3)
Other real estate expense, net - - - - - - -
Credit-related expense 7 6 6 1 17 1 17
Professional and legal services 16 17 12 (1) (6) 4 33
Advertising 4 4 7 - - (3) (43)
FDIC premiums 5 6 7 (1) (17) (2) (29)
Other 48 58 76 (10) (17) (28) (37)
Total noninterest expense
$ 429 $ 428 $ 442 $ 1 - $ (13) (3)
Adjusted noninterest expense 1
$ 432 $ 419 $ 440 $ 13 3 $ (8) (2)
1 For information on non-GAAP financial measures, see pages 15-17.
Noninterest expense declined $13 million, when compared with the third quarter of 2020. The decline was largely attributable to a $28 million decrease in other noninterest expense that was primarily due to a $30 million donation to our charitable foundation during the third quarter of 2020, which was related to the origination fees earned on PPP loans. Salaries and benefits expense increased $16 million, or 6%, primarily due to higher incentive compensation and profit sharing as a result of improved profitability. Professional and legal services expense increased $4 million, or 33%, mainly due to various technology-related and other outsourced services.
Adjusted noninterest expense decreased $8 million, or 2%, to $432 million, compared with $440 million for the same prior year quarter, primarily due to the decrease in other noninterest expense previously discussed. The efficiency ratio was 59.8%, compared with 62.2% for the third quarter of 2020. For information on non-GAAP financial measures, including differences between noninterest expense and adjusted noninterest expense, see pages 15-17.
BALANCE SHEET ANALYSIS
Asset Quality
3Q21 - 2Q21 3Q21 - 3Q20
(In millions) 3Q21 2Q21 3Q20 bps bps
Ratio of nonperforming assets1 to loans and leases and other real estate owned
0.64 % 0.60 % 0.68 % 4 (4)
Annualized ratio of net loan and lease charge-offs to average loans
(0.01) % (0.02) % 0.38 % 1 (39)
Ratio of total allowance for credit losses to loans1 and leases outstanding, at period end
1.04 % 1.12 % 1.68 % (8) (64)
Ratio of total allowance for credit losses to loans1 and leases outstanding (excluding PPP loans), at period end
1.11 % 1.22 % 1.91 % (11) (80)
$ % $ %
Classified loans $ 1,397 $ 1,557 $ 1,639 $ (160) (10)% $ (242) (15)%
Nonperforming assets2
324 308 372 16 5 (48) (13)
Net loan and lease charge-offs (recoveries) (1) (2) 52 1 50 (53) NM
Provision for credit losses (46) (123) 55 77 63 (101) NM
1 Does not include loans held for sale.
2 Does not include banking premises held for sale.
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ZIONS BANCORPORATION, N.A.
Press Release - Page 5
October 18, 2021
Net loan and lease recoveries were $1 million in the third quarter of 2021, compared with net charge-offs of $52 million in the prior year quarter. The ratio of nonaccrual loans and accruing loans past due 90 days or more to loans and leases (ex-PPP) was 0.69%, compared with 0.78% for the third quarter of 2020, and the ratio of classified loans to total loans and leases (ex-PPP) was 2.9%, compared with 3.4%, for the prior year quarter.
We recorded a negative $46 million provision for credit losses, compared with a positive $55 million provision for the third quarter of 2020. The allowance for credit losses ("ACL") was $529 millionat September 30, 2021, compared with $917 million at September 30, 2020. The decrease in the ACL was due largely to improvements in economic forecasts and credit quality, compared with the economic stress caused by the COVID-19 pandemic in the prior year period. The ratio of total ACL to total loans and leases (ex-PPP) was 1.11% at September 30, 2021, compared with 1.91% at September 30, 2020.
Loans and Leases
3Q21 - 2Q21 3Q21 - 3Q20
(In millions) 3Q21 2Q21 3Q20 $ % $ %
Loans held for sale $ 67 $ 66 $ 89 $ 1 2% $ (22) (25)%
Loans and leases:
Commercial - excluding PPP loans
25,369 24,700 24,704 669 3 665 3
Commercial - PPP loans
3,080 4,461 6,810 (1,381) (31) (3,730) (55)
Commercial real estate
12,153 12,108 12,027 45 - 126 1
Consumer
10,076 10,129 11,204 (53) (1) (1,128) (10)
Loans and leases, net of unearned income and fees 50,678 51,398 54,745 (720) (1) (4,067) (7)
Less allowance for loan losses
491 535 853 (44) (8) (362) (42)
Loans and leases held for investment, net of allowance
$ 50,187 $ 50,863 $ 53,892 $ (676) (1) $ (3,705) (7)
Unfunded lending commitments and letters of credit $ 26,138 $ 25,689 $ 24,845 $ 449 2 $ 1,293 5

Loans and leases, net of unearned income and fees, decreased $4.1 billion, or 7%, to $50.7 billion at September 30, 2021, from $54.7 billion at September 30, 2020, primarily due to the forgiveness of PPP loans. Excluding PPP loans, total loans and leases decreased $0.3 billion, or 1%, to $47.6 billion at September 30, 2021. Within commercial loans, a $0.7 billion increase in municipal loans and a $0.3 billion increase in owner occupied loans were partially offset by a $0.3 billion decrease in commercial and industrial loans. Commercial real estate construction and land development loans increased $0.5 billion. Consumer 1-4 family residential mortgage loans decreased $1.1 billion, primarily due to continued refinancing activity. Unfunded lending commitments and letters of credit increased $1.3 billion, or 5%, to $26.1 billion at September 30, 2021, primarily due to growth in our home equity credit line and commercial and industrial loan portfolios as well as a decrease in commitment utilization.
Deposits and Borrowed Funds
3Q21 - 2Q21 3Q21 - 3Q20
(In millions) 3Q21 2Q21 3Q20 $ % $ %
Noninterest-bearing demand $ 39,150 $ 38,128 $ 31,338 $ 1,022 3 % $ 7,812 25 %
Interest-bearing:
Savings and money market
37,046 36,037 32,305 1,009 3 4,741 15
Time
1,688 1,940 3,451 (252) (13) (1,763) (51)
Total deposits $ 77,884 $ 76,105 $ 67,094 $ 1,779 2 $ 10,790 16
Borrowed funds:
Federal funds purchased and other short-term borrowings $ 579 $ 741 $ 1,252 $ (162) (22) $ (673) (54)
Long-term debt 1,020 1,308 1,347 (288) (22) (327) (24)
Total borrowed funds $ 1,599 $ 2,049 $ 2,599 $ (450) (22) $ (1,000) (38)

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ZIONS BANCORPORATION, N.A.
Press Release - Page 6
October 18, 2021
Total deposits increased $10.8 billion, or 16%, to $77.9 billion at September 30, 2021, primarily due to a $7.8 billion increase in noninterest-bearing deposits. Average total deposits increased to $77.4 billion, compared with $66.5 billion for the third quarter of 2020. Average noninterest-bearing deposits increased 24% to $38.3 billion, from $30.8 billion for the prior year quarter, and were 50% and 46% of average total deposits, respectively, for the same periods.
Total borrowed funds decreased $1.0 billion, or 38%, to $1.6 billion at September 30, 2021. Average borrowed funds decreased to $1.8 billion, compared with $2.4 billion for the prior year quarter. The decrease in long-term debt was primarily due to the maturity of $281 million of 3-year, 3.50% senior notes during the current quarter. The decrease in overall borrowed funds continues to reflect less reliance on federal funds purchased and other short-term borrowings due to strong deposit growth, which significantly exceeded earning asset growth over this period.
Shareholders' Equity
3Q21 - 2Q21 3Q21 - 3Q20
(In millions, except share data) 3Q21 2Q21 3Q20 $ % $ %
Shareholders' equity:
Preferred stock
$ 440 $ 440 $ 566 $ - - % $ (126) (22) %
Common stock and additional paid-in capital
2,245 2,565 2,680 (320) (12) (435) (16)
Retained earnings
5,025 4,853 4,090 172 4 935 23
Accumulated other comprehensive income
64 175 332 (111) (63) (268) (81)
Total shareholders' equity $ 7,774 $ 8,033 $ 7,668 $ (259) (3) $ 106 1
Capital distributions:
Common dividends paid $ 62 $ 56 $ 56 $ 6 11 $ 6 11
Bank common stock repurchased 325 100 50 225 NM 275 NM
Total capital distributed to common shareholders $ 387 $ 156 $ 106 $ 231 NM $ 281 NM
shares % shares %
Weighted average diluted common shares outstanding (in thousands)
160,480 163,054 163,779 (2,574) (2) % (3,299) (2) %
Common shares outstanding, at period end (in thousands) 156,530 162,248 164,009 (5,718) (4) (7,479) (5)
During the third quarter of 2021, the common stock dividend increased to $0.38 per share, from $0.34 during the prior year quarter. Weighted average diluted shares outstanding decreased 3.3 million from the third quarter of 2020, primarily due to share repurchases. During the third quarter of 2021, we repurchased 5.8 million common shares outstanding for $325 million, which is equivalent to 3.6% of common stock outstanding as of June 30, 2021.
Preferred stock decreased $126 million due to the redemption of the outstanding shares of our 5.75% Series H Non-Cumulative Perpetual Preferred Stock at par value during the second quarter of 2021. Accumulated other comprehensive income decreased $268 million to $64 million at September 30, 2021, primarily due to decreases in the fair value of available-for-sale securities as a result of changes in interest rates.
Tangible book value per common share increased to $40.37 at September 30, 2021, compared with $37.11 at September 30, 2020. Basel III common equity tier 1 ("CET1") capital was $6.2 billion at September 30, 2021 and $5.8 billion atSeptember 30, 2020. The estimated Basel III CET1 capital ratio was 10.9% at September 30, 2021, compared with 10.4% at September 30, 2020. For information on non-GAAP financial measures, see pages 15-17.
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 18, 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 7682874, 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.
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ZIONS BANCORPORATION, N.A.
Press Release - Page 7
October 18, 2021
About Zions Bancorporation, N.A.
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.
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 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, industry trends, and results or regulatory outcomes to differ materially from those expressed or implied. Forward-looking statements include, among others:
•statements with respect to the beliefs, plans, objectives, goals, targets, commitments, designs, guidelines, expectations, anticipations, and future financial condition, results of operations and performance of Zions Bancorporation, National Association and its subsidiaries (collectively "Zions Bancorporation, N.A.," "the Bank," "we," "our," "us"); and
•statements preceded by, followed by, or that include the words "may," "might," "can," "continue," "could," "should," "would," "believe," "anticipate," "estimate," "forecasts," "expect," "intend," "target," "commit," "design," "plan," "projects," "will," and the negative thereof and similar words and expressions.
These forward-looking statements are not guarantees, nor should they be relied upon as representing management's
views as of any subsequent date. Actual results and outcomes may differ materially from those presented.
Although this list is not comprehensive, important factors that may cause such material differences include changes
in general economic and industry conditions; changes and uncertainties in legislation and fiscal, monetary,
regulatory, trade and tax policies; changes in interest rates and uncertainty regarding the transition away from the
London Interbank Offered Rate ("LIBOR") toward other 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 and controls
designed to guard against fraud, cyber, and privacy risks; and the effects of the COVID-19 pandemic or other
national or international crises or conflicts that may occur in the future and governmental responses to such matters.
These factors, risks, and uncertainties, among others, are discussed in our 2020 Form 10-K and subsequent filings
with the Securities and Exchange Commission (SEC) and are 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, 16th Floor, Salt Lake City, Utah 84133, (801) 844-7637.
We caution against the undue reliance on forward-looking statements, which reflect our views only as of the date
they are made. Except to the extent required by law, we specifically disclaim any obligation to update any factors or
to publicly announce the 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 8
October 18, 2021
FINANCIAL HIGHLIGHTS
(Unaudited)
Three Months Ended
(In millions, except share, per share, and ratio data) September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
BALANCE SHEET1
Loans held for investment, net of allowance $ 50,187 $ 50,863 $ 52,826 $ 52,699 $ 53,892
Total assets 88,306 87,208 85,121 81,479 78,357
Deposits 77,884 76,105 73,853 69,653 67,094
Total shareholders' equity 7,774 8,033 7,933 7,886 7,668
STATEMENT OF INCOME
Net earnings applicable to common shareholders
$ 234 $ 345 $ 314 $ 275 $ 167
Net interest income 555 555 545 550 555
Taxable-equivalent net interest income 2
562 562 553 557 562
Total noninterest income 139 205 169 166 157
Total noninterest expense 429 428 435 424 442
Adjusted pre-provision net revenue 2
290 290 253 280 267
Provision for credit losses (46) (123) (132) (67) 55
SHARE AND PER COMMON SHARE AMOUNTS
Net earnings per diluted common share $ 1.45 $ 2.08 $ 1.90 $ 1.66 $ 1.01
Dividends 0.38 0.34 0.34 0.34 0.34
Book value per common share 1
46.85 46.80 44.98 44.61 43.30
Tangible book value per common share 1, 2
40.37 40.54 38.77 38.42 37.11
Weighted average share price 54.78 55.86 51.34 36.86 32.09
Weighted average diluted common shares outstanding (in thousands)
160,480 163,054 163,887 163,900 163,779
Common shares outstanding (in thousands) 1
156,530 162,248 163,800 164,090 164,009
SELECTED RATIOS AND OTHER DATA
Return on average assets 1.08 % 1.65 % 1.57 % 1.41 % 0.89 %
Return on average common equity 12.3 % 18.6 % 17.4 % 15.3 % 9.4 %
Return on average tangible common equity 2
14.2 % 21.6 % 20.2 % 17.8 % 11.0 %
Net interest margin 2.68 % 2.79 % 2.86 % 2.95 % 3.06 %
Cost of total deposits, annualized 0.03 % 0.04 % 0.05 % 0.08 % 0.11 %
Efficiency ratio 2
59.8 % 59.1 % 63.5 % 60.2 % 62.2 %
Effective tax rate 22.8 % 22.2 % 21.7 % 20.9 % 18.6 %
Ratio of nonperforming assets to loans and leases and other real estate owned
0.64 % 0.60 % 0.61 % 0.69 % 0.68 %
Annualized ratio of net loan and lease charge-offs to average loans (0.01) % (0.02) % 0.06 % 0.11 % 0.38 %
Ratio of total allowance for credit losses to loans and leases outstanding 1
1.04 % 1.12 % 1.30 % 1.56 % 1.68 %
Full-time equivalent employees
9,641 9,727 9,682 9,678 9,726
CAPITAL RATIOS AND DATA 1
Common equity tier 1 capital 3
$ 6,236 $ 6,383 $ 6,206 $ 6,013 $ 5,804
Risk-weighted assets 3
57,459 56,339 55,402 55,866 55,654
Tangible common equity ratio 7.2 % 7.6 % 7.6 % 7.8 % 7.9 %
Common equity tier 1 capital ratio 3
10.9 % 11.3 % 11.2 % 10.8 % 10.4 %
Tier 1 leverage ratio 3
7.6 % 8.0 % 8.3 % 8.3 % 8.3 %
Tier 1 risk-based capital ratio 3
11.6 % 12.1 % 12.2 % 11.8 % 11.4 %
Total risk-based capital ratio 3
13.6 % 14.2 % 14.5 % 14.1 % 13.7 %
1 At period end.
2 For information on non-GAAP financial measures, see pages 15-17.
3 Current period ratios and amounts represent estimates.
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ZIONS BANCORPORATION, N.A.
Press Release - Page 9
October 18, 2021
CONSOLIDATED BALANCE SHEETS
(In millions, shares in thousands) September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
ASSETS
Cash and due from banks $ 597 $ 525 $ 576 $ 543 $ 576
Money market investments:
Interest-bearing deposits 9,442 10,086 8,427 1,074 856
Federal funds sold and security resell agreements 1,858 1,714 1,315 5,765 2,804
Investment securities:
Held-to-maturity1, at amortized cost
459 620 583 636 592
Available-for-sale, at fair value 20,461 18,170 16,644 15,731 14,662
Trading account, at fair value 305 181 189 266 198
Total securities, net of allowance 21,225 18,971 17,416 16,633 15,452
Loans held for sale 67 66 77 81 89
Loans and leases, net of unearned income and fees 50,678 51,398 53,472 53,476 54,745
Less allowance for loan losses 491 535 646 777 853
Loans held for investment, net of allowance 50,187 50,863 52,826 52,699 53,892
Other noninterest-bearing investments 868 895 815 817 830
Premises, equipment and software, net 1,282 1,239 1,236 1,209 1,187
Goodwill and intangibles 1,015 1,015 1,016 1,016 1,016
Other real estate owned 21 23 3 4 6
Other assets 1,744 1,811 1,414 1,638 1,649
Total assets $ 88,306 $ 87,208 $ 85,121 $ 81,479 $ 78,357
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand $ 39,150 $ 38,128 $ 35,882 $ 32,494 $ 31,338
Interest-bearing:
Savings and money market 37,046 36,037 35,762 34,571 32,305
Time 1,688 1,940 2,209 2,588 3,451
Total deposits 77,884 76,105 73,853 69,653 67,094
Federal funds purchased and other short-term borrowings
579 741 1,032 1,572 1,252
Long-term debt 1,020 1,308 1,299 1,336 1,347
Reserve for unfunded lending commitments 38 39 49 58 64
Other liabilities 1,011 982 955 974 932
Total liabilities 80,532 79,175 77,188 73,593 70,689
Shareholders' equity:
Preferred stock, without par value; authorized 4,400 shares 440 440 566 566 566
Common stock2 ($0.001 par value; authorized 350,000 shares) and additional paid-in capital
2,245 2,565 2,653 2,686 2,680
Retained earnings 5,025 4,853 4,566 4,309 4,090
Accumulated other comprehensive income 64 175 148 325 332
Total shareholders' equity 7,774 8,033 7,933 7,886 7,668
Total liabilities and shareholders' equity $ 88,306 $ 87,208 $ 85,121 $ 81,479 $ 78,357
1 Held-to-maturity (approximate fair value)
$ 461 $ 622 $ 584 $ 640 $ 596
2 Common shares (issued and outstanding)
156,530 162,248 163,800 164,090 164,009
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ZIONS BANCORPORATION, N.A.
Press Release - Page 10
October 18, 2021
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) Three Months Ended
(In millions, except share and per share amounts) September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Interest income:
Interest and fees on loans $ 484 $ 492 $ 488 $ 499 $ 505
Interest on money market investments 7 4 3 3 2
Interest on securities 78 74 71 69 74
Total interest income 569 570 562 571 581
Interest expense:
Interest on deposits 7 7 9 13 18
Interest on short- and long-term borrowings 7 8 8 8 8
Total interest expense 14 15 17 21 26
Net interest income 555 555 545 550 555
Provision for credit losses:
Provision for loan losses (45) (113) (123) (61) 45
Provision for unfunded lending commitments (1) (10) (9) (6) 10
Total provision for credit losses (46) (123) (132) (67) 55
Net interest income after provision for credit losses 601 678 677 617 500
Noninterest income:
Commercial account fees 34 34 32 32 32
Card fees 25 24 21 22 21
Retail and business banking fees 20 18 17 18 17
Loan-related fees and income 27 21 25 25 32
Capital markets and foreign exchange fees 17 17 15 19 16
Wealth management fees 13 12 12 10 10
Other customer-related fees 15 13 11 13 11
Customer-related fees 151 139 133 139 139
Fair value and nonhedge derivative income (loss) 2 (5) 18 8 8
Dividends and other income 9 8 7 7 6
Securities gains (losses), net (23) 63 11 12 4
Total noninterest income 139 205 169 166 157
Noninterest expense:
Salaries and employee benefits 285 272 288 277 269
Occupancy, net 33 33 33 33 33
Furniture, equipment and software, net 31 32 32 30 32
Other real estate expense, net - - - 1 -
Credit-related expense 7 6 6 6 6
Professional and legal services 16 17 20 19 12
Advertising 4 4 5 6 7
FDIC premiums 5 6 7 6 7
Other 48 58 44 46 76
Total noninterest expense 429 428 435 424 442
Income before income taxes 311 455 411 359 215
Income taxes 71 101 89 75 40
Net income 240 354 322 284 175
Preferred stock dividends (6) (9) (8) (9) (8)
Net earnings applicable to common shareholders $ 234 $ 345 $ 314 $ 275 $ 167
Weighted average common shares outstanding during the period:
Basic shares (in thousands) 160,221 162,742 163,551 163,658 163,608
Diluted shares (in thousands) 160,480 163,054 163,887 163,900 163,779
Net earnings per common share:
Basic $ 1.45 $ 2.08 $ 1.90 $ 1.66 $ 1.01
Diluted 1.45 2.08 1.90 1.66 1.01
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ZIONS BANCORPORATION, N.A.
Press Release - Page 11
October 18, 2021
Loan Balances Held for Investment by Portfolio Type
(Unaudited)
(In millions) September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Commercial:
Commercial and industrial $ 13,230 $ 12,947 $ 12,843 $ 13,444 $ 13,543
PPP 3,080 4,461 6,465 5,572 6,810
Leasing 293 307 310 320 319
Owner occupied 8,446 8,231 8,112 8,185 8,136
Municipal 3,400 3,215 3,234 2,951 2,706
Total commercial 28,449 29,161 30,964 30,472 31,514
Commercial real estate:
Construction and land development 2,843 2,576 2,443 2,345 2,298
Term 9,310 9,532 9,617 9,759 9,729
Total commercial real estate 12,153 12,108 12,060 12,104 12,027
Consumer:
Home equity credit line 2,834 2,727 2,695 2,745 2,797
1-4 family residential 6,140 6,269 6,630 6,969 7,209
Construction and other consumer real estate 584 593 589 630 633
Bankcard and other revolving plans 395 415 409 432 431
Other 123 125 125 124 134
Total consumer 10,076 10,129 10,448 10,900 11,204
Loans and leases, net of unearned income and fees $ 50,678 $ 51,398 $ 53,472 $ 53,476 $ 54,745

Nonperforming Assets
(Unaudited)
(In millions) September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Nonaccrual loans1
$ 323 $ 307 $ 324 $ 367 $ 366
Other real estate owned2
1 1 3 4 6
Total nonperforming assets $ 324 $ 308 $ 327 $ 371 $ 372
Ratio of nonperforming assets to loans1 and leases and other real estate owned2
0.64 % 0.60 % 0.61 % 0.69 % 0.68 %
Accruing loans past due 90 days or more $ 4 $ 6 $ 9 $ 12 $ 9
Ratio of accruing loans past due 90 days or more to loans1 and leases
0.01 % 0.01 % 0.02 % 0.02 % 0.02 %
Nonaccrual loans and accruing loans past due 90 days or more
$ 327 $ 313 $ 333 $ 379 $ 375
Ratio of nonaccrual loans and accruing loans past due 90 days or more to loans1 and leases
0.64 % 0.61 % 0.62 % 0.71 % 0.68 %
Accruing loans past due 30-89 days $ 114 $ 29 $ 100 $ 112 $ 58
Restructured loans included in nonaccrual loans 121 128 134 113 84
Restructured loans on accrual 231 330 280 198 197
Classified loans 1,397 1,557 1,660 1,641 1,639
1 Includes loans held for sale.
2 Does not include banking premises held for sale.
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ZIONS BANCORPORATION, N.A.
Press Release - Page 12
October 18, 2021
Allowance for Credit Losses
(Unaudited)
Three Months Ended
(In millions) September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Allowance for Loan Losses
Balance at beginning of period $ 535 $ 646 $ 777 $ 853 $ 860
Provision for loan losses (45) (113) (123) (61) 45
Loan and lease charge-offs 8 8 21 21 58
Less: Recoveries 9 10 13 6 6
Net loan and lease charge-offs (1) (2) 8 15 52
Balance at end of period $ 491 $ 535 $ 646 $ 777 $ 853
Ratio of allowance for loan losses to loans1 and leases, at period end
0.97 % 1.04 % 1.21 % 1.45 % 1.56 %
Ratio of allowance for loan losses to nonaccrual loans1 at period end
152 % 175 % 199 % 212 % 242 %
Annualized ratio of net loan and lease charge-offs to average loans
(0.01) % (0.02) % 0.06 % 0.11 % 0.38 %
Annualized ratio of net loan and lease charge-offs to average loans (excluding PPP loans) (0.01) % (0.02) % 0.07 % 0.13 % 0.43 %
Reserve for Unfunded Lending Commitments
Balance at beginning of period $ 39 $ 49 $ 58 $ 64 $ 54
Provision for unfunded lending commitments (1) (10) (9) (6) 10
Balance at end of period $ 38 $ 39 $ 49 $ 58 $ 64
Allowance for Credit Losses
Allowance for loan losses $ 491 $ 535 $ 646 $ 777 $ 853
Reserve for unfunded lending commitments 38 39 49 58 64
Total allowance for credit losses $ 529 $ 574 $ 695 $ 835 $ 917
Ratio of total allowance for credit losses to loans1 and leases outstanding, at period end
1.04 % 1.12 % 1.30 % 1.56 % 1.68 %
Ratio of total allowance for credit losses to loans1 and leases outstanding (excluding PPP loans), at period end
1.11 % 1.22 % 1.48 % 1.74 % 1.91 %
1 Does not include loans held for sale.
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ZIONS BANCORPORATION, N.A.
Press Release - Page 13
October 18, 2021
Nonaccrual Loans by Portfolio Type
(Unaudited)
(In millions) September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Loans held for sale $ - $ 1 $ - $ - $ 14
Commercial:
Commercial and industrial $ 157 $ 111 $ 119 $ 140 $ 158
PPP - 1 - - -
Leasing - - - - 1
Owner occupied 67 69 74 76 81
Municipal - - - - -
Total commercial 224 181 193 216 240
Commercial real estate:
Construction and land development - - - - -
Term 25 28 31 31 37
Total commercial real estate 25 28 31 31 37
Consumer:
Home equity credit line 15 18 19 16 16
1-4 family residential 58 78 80 103 59
Construction and other consumer real estate - - - - -
Bankcard and other revolving plans 1 1 1 1 -
Other - - - - -
Total consumer 74 97 100 120 75
Total nonaccrual loans $ 323 $ 307 $ 324 $ 367 $ 366

Net Charge-Offs by Portfolio Type
(Unaudited)
(In millions) September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Commercial:
Commercial and industrial $ (2) $ (2) $ 8 $ 15 $ 51
PPP - - - - -
Leasing - - - - -
Owner occupied (1) - - - (1)
Municipal - - - - -
Total commercial (3) (2) 8 15 50
Commercial real estate:
Construction and land development - - - - -
Term - - - - 1
Total commercial real estate - - - - 1
Consumer:
Home equity credit line 1 (1) (1) - -
1-4 family residential 1 - (1) (1) -
Construction and other consumer real estate - - - - -
Bankcard and other revolving plans - 1 1 - 1
Other - - 1 1 -
Total consumer loans 2 - - - 1
Total net charge-offs (recoveries) $ (1) $ (2) $ 8 $ 15 $ 52
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ZIONS BANCORPORATION, N.A.
Press Release - Page 14
October 18, 2021
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited) Three Months Ended
September 30, 2021 June 30, 2021 September 30, 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 $ 12,716 0.20 % $ 10,253 0.17 % $ 3,116 0.25 %
Securities:
Held-to-maturity 557 2.87 % 579 2.91 % 672 3.39 %
Available-for-sale 18,814 1.56 % 17,041 1.63 % 14,083 1.95 %
Trading account 199 4.41 % 211 4.43 % 158 4.31 %
Total securities 19,570 1.63 % 17,831 1.71 % 14,913 2.04 %
Loans held for sale 52 3.03 % 62 2.50 % 86 4.32 %
Loans and leases:2
Commercial - excluding PPP loans 24,854 3.76 % 24,560 3.85 % 24,909 3.96 %
Commercial - PPP loans 3,795 6.66 % 5,945 4.56 % 6,771 3.03 %
Commercial real estate 12,144 3.42 % 12,037 3.46 % 11,986 3.52 %
Consumer 10,058 3.38 % 10,228 3.51 % 11,327 3.60 %
Total loans and leases 50,851 3.82 % 52,770 3.77 % 54,993 3.68 %
Total interest-earning assets 83,189 2.75 % 80,916 2.86 % 73,108 3.20 %
Cash and due from banks 597 579 583
Allowance for credit losses on loans and debt securities (536) (647) (852)
Goodwill and intangibles 1,015 1,015 1,015
Other assets 4,291 4,094 4,129
Total assets $ 88,556 $ 85,957 $ 77,983
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits:
Savings and money market $ 37,262 0.05 % $ 35,987 0.06 % $ 32,111 0.11 %
Time 1,829 0.32 % 2,108 0.42 % 3,602 0.96 %
Total interest-bearing deposits 39,091 0.07 % 38,095 0.08 % 35,713 0.20 %
Borrowed funds:
Federal funds purchased and other short-term borrowings 630 0.08 % 834 0.06 % 1,078 0.09 %
Long-term debt 1,204 2.34 % 1,303 2.31 % 1,353 2.32 %
Total borrowed funds 1,834 1.56 % 2,137 1.43 % 2,431 1.33 %
Total interest-bearing funds 40,925 0.13 % 40,232 0.15 % 38,144 0.27 %
Noninterest-bearing demand deposits 38,320 36,545 30,789
Other liabilities 1,302 1,200 1,406
Total liabilities 80,547 77,977 70,339
Shareholders' equity:
Preferred equity 440 544 566
Common equity 7,569 7,436 7,078
Total shareholders' equity 8,009 7,980 7,644
Total liabilities and shareholders' equity $ 88,556 $ 85,957 $ 77,983
Spread on average interest-bearing funds 2.62 % 2.71 % 2.93 %
Impact of net noninterest-bearing sources of funds 0.06 % 0.08 % 0.13 %
Net interest margin 2.68 % 2.79 % 3.06 %
Memo: total loans and leases, excluding PPP loans 47,056 3.59 % 46,825 3.67 % 48,222 3.77 %
Memo: total cost of deposits 0.03 % 0.04 % 0.11 %
Memo: total deposits and interest-bearing liabilities 79,245 0.07 % 76,777 0.08 % 68,933 0.15 %
1 Rates are calculated using amounts in thousands and a tax rate of 21% for the periods presented.
2 Net of unamortized purchase premiums, discounts, and deferred loan fees and costs.
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ZIONS BANCORPORATION, N.A.
Press Release - Page 15
October 18, 2021
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. We consider these adjustments to be relevant to ongoing operating results and to provide a meaningful base for period-to-period and company-to-company comparisons. We use these non-GAAP financial measures to assess our performance, financial position, and for presentations of our performance to investors. We believe that presenting these non-GAAP financial measures permits investors to assess our performance on the same basis as that applied by our management and the financial services industry.
Non-GAAP financial measures have inherent limitations and are not necessarily comparable to similar capital measures that may be presented by other financial services companies. 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.
Tangible Common Equity and Related Measures
Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets and their related amortization. We believe these non-GAAP measures provide useful information about our use of shareholders' equity and provide a basis for evaluating the performance of a business more consistently, whether acquired or developed internally.
Three Months Ended
(Dollar amounts in millions) September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Return on Average Tangible Common Equity
Net earnings applicable to common shareholders, net of tax (a) $ 234 $ 345 $ 314 $ 275 $ 167
Average common equity (GAAP) $ 7,569 $ 7,436 $ 7,333 $ 7,166 $ 7,078
Average goodwill and intangibles (1,015) (1,015) (1,016) (1,016) (1,015)
Average tangible common equity (non-GAAP) (b) $ 6,554 $ 6,421 $ 6,317 $ 6,150 $ 6,063
Number of days in quarter (c) 92 91 90 92 92
Number of days in year (d) 365 365 365 366 366
Return on average tangible common equity (non-GAAP)
(a/b/c)*d 14.2 % 21.6 % 20.2 % 17.8 % 11.0 %

(In millions, except shares and per share amounts) September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Tangible Book Value per Common Share
Total shareholders' equity (GAAP) $ 7,774 $ 8,033 $ 7,933 $ 7,886 $ 7,668
Preferred stock (440) (440) (566) (566) (566)
Goodwill and intangibles (1,015) (1,015) (1,016) (1,016) (1,016)
Tangible common equity (non-GAAP) (a) $ 6,319 $ 6,578 $ 6,351 $ 6,304 $ 6,086
Common shares outstanding (in thousands) (b) 156,530 162,248 163,800 164,090 164,009
Tangible book value per common share (non-GAAP)
(a/b) $ 40.37 $ 40.54 $ 38.77 $ 38.42 $ 37.11

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ZIONS BANCORPORATION, N.A.
Press Release - Page 16
October 18, 2021
Efficiency Ratio and Adjusted Pre-Provision Net Revenue
The efficiency ratio is a measure of operating expense relative to revenue. We believe the efficiency ratio provides useful information regarding the cost of generating revenue. The methodology of determining the efficiency ratio may differ among companies. We make adjustments to exclude certain items that are not generally expected to recur frequently, as identified in the subsequent schedule, which we believe allow for more consistent comparability among periods. Adjusted noninterest expense provides a measure as to how well we are managing our expenses; adjusted pre-provision net revenue ("PPNR") enables management 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) September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
September 30,
2020
Efficiency Ratio
Noninterest expense (GAAP) (a) $ 429 $ 428 $ 435 $ 424 $ 442
Adjustments:
Severance costs 1 - - 1 1
Other real estate expense, net - - - 1 -
Restructuring costs - - - (1) 1
Pension termination-related expense - - (5) - -
SBIC investment success fee accrual 1
(4) 9 - - -
Total adjustments (b) (3) 9 (5) 1 2
Adjusted noninterest expense (non-GAAP) (a-b)=(c) $ 432 $ 419 $ 440 $ 423 $ 440
Net interest income (GAAP)
(d) $ 555 $ 555 $ 545 $ 550 $ 555
Fully taxable-equivalent adjustments
(e) 7 7 8 7 7
Taxable-equivalent net interest income (non-GAAP)
(d+e)=(f) 562 562 553 557 562
Noninterest income (GAAP) (g) 139 205 169 166 157
Combined income (non-GAAP) (f+g)=(h) 701 767 722 723 719
Adjustments:
Fair value and nonhedge derivative income (loss) 2 (5) 18 8 8
Securities gains (losses), net (23) 63 11 12 4
Total adjustments (i) (21) 58 29 20 12
Adjusted taxable-equivalent revenue
(non-GAAP)
(h-i)=(j) $ 722 $ 709 $ 693 $ 703 $ 707
Pre-provision net revenue (PPNR) (non-GAAP)
(h)-(a) $ 272 $ 339 $ 287 $ 299 $ 277
Adjusted PPNR (non-GAAP)
(j)-(c) 290 290 253 280 267
Efficiency ratio (non-GAAP) 2
(c/j) 59.8 % 59.1 % 63.5 % 60.2 % 62.2 %
1 The success fee accrual is associated with the unrealized gain/(loss) from our SBIC investment in Recursion Pharmaceuticals, Inc., and is adjusted based on the mark-to-market value of the investment. The unrealized gain/(loss) is excluded from the efficiency ratio through securities gains (losses), net.
2 Excluding the $30 million charitable contribution, the efficiency ratio for the three months ended September 30, 2020 would have been 58.0%.

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ZIONS BANCORPORATION, N.A.
Press Release - Page 17
October 18, 2021
Nine Months Ended
(In millions) September 30,
2021
September 30,
2020
Efficiency Ratio
Noninterest expense (GAAP) (a) $ 1,292 $ 1,279
Adjustments:
Severance costs 1 -
Restructuring costs - 2
Pension termination-related expense (5) 28
SBIC investment success fee accrual 1
5 -
Total adjustments (b) 1 30
Adjusted noninterest expense (non-GAAP) (a-b)=(c) $ 1,291 $ 1,249
Net interest income (GAAP) (d) $ 1,655 $ 1,665
Fully taxable-equivalent adjustments (e) 22 21
Taxable-equivalent net interest income (non-GAAP) (d+e)=(f) 1,677 1,686
Noninterest income (GAAP) (g) 513 408
Combined income (non-GAAP) (f+g)=(h) 2,190 2,094
Adjustments:
Fair value and nonhedge derivative loss 15 (15)
Securities gains, net 51 (5)
Total adjustments (i) 66 (20)
Adjusted taxable-equivalent revenue (non-GAAP) (h-i)=(j) $ 2,124 $ 2,114
Pre-provision net revenue (PPNR) (h)-(a) $ 898 $ 815
Adjusted PPNR (non-GAAP) (j)-(c) 833 865
Efficiency ratio (non-GAAP) (c/j) 60.8 % 59.1 %
1 The success fee accrual is associated with the unrealized gain/(loss) from our SBIC investment in Recursion Pharmaceuticals, Inc., and is adjusted based on the mark-to-market value of the investment. The unrealized gain/(loss) is excluded from the efficiency ratio through securities gains (losses), net.
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