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Form 8-K ZIONS BANCORPORATION, For: Jan 19

January 19, 2021 4:29 PM


Zions Bancorporation, N.A.
One South Main
Salt Lake City, UT 84133
January 19, 2021
zions2020630-er1a.jpg
www.zionsbancorporation.com
Fourth Quarter 2020 Financial Results: FOR IMMEDIATE RELEASE
Investor and Media Contact: James Abbott (801) 844-7637
Zions Bancorporation, N.A. Reports: 4Q20 Net Earnings¹ of $275 million, diluted EPS of $1.66
compared with 4Q19 Net Earnings¹ of $174 million, diluted EPS of $0.97,
and 3Q20 Net Earnings¹ of $167 million, diluted EPS of $1.01
2020 Annual Net Earnings¹ of $505 million, diluted EPS of $3.02,
compared with 2019 Annual Net Earnings¹ of $782 million, diluted EPS of $4.16

FOURTH QUARTER RESULTS
$1.66$275 million2.95%10.8%
Net earnings1 per diluted common share
Net Earnings 1
Net interest margin (“NIM”)Common Equity
Tier 1
FOURTH QUARTER HIGHLIGHTS²
Net Interest Income and NIM
•
Net interest income was $550 million, compared with $559 million
•
NIM was 2.95%, compared with 3.46%, and was significantly impacted by higher average cash balances of $5.4 billion compared with $1.4 billion
Operating Performance
•
Pre-provision net revenue ("PPNR") was $299 million, up 22%, and adjusted PPNR³ was $280 million, up 2%
•
Noninterest expense was $424 million, down 10%, and adjusted noninterest expense³ was $423 million, down 3%
•
The efficiency ratio³ was 60.2%, compared with 61.3%
Loans and Credit Quality
•
Net loans and leases were $53.5 billion, up $4.8 billion, or 10%, and included PPP loans of $5.6 billion
•
Nonperforming assets were $371 million, or 0.8%, of loans (ex-PPP), compared with $251 million, or 0.5%, of loans
•
The provision for credit losses was a negative $67 million, compared with a positive $4 million
•
The allowance for credit losses was 1.7% of loans (ex-PPP), compared with 1.1% of loans
•
Annualized net charge-offs of 0.11% of average loans, compared with 0.18%
•
0.5% of loans (ex-PPP) were under a deferral related to COVID-19
Capital
•
The CET1 capital ratio was 10.8%, compared with 10.2%
Notable items
•
About 9,900 PPP loans forgiven by the SBA, totaling $1.3 billion, which contributed $26 million of interest income through accelerated recognition of net unamortized deferred fees
•
Deposits were $69.7 billion, up $12.6 billion, or 22%, resulting in a loan-to-deposit ratio of 77%. Deposit growth has been impacted by various government stimulus programs.
•
Gain on sale of Farmer Mac Class C stock of $9 million
•
Positive credit valuation adjustment of $8 million, or $0.04 per share,4 on client-related interest rate swaps
CEO COMMENTARY
Harris H. Simmons, Chairman and CEO of Zions Bancorporation, commented, “We were quite pleased with the quarter, which was characterized by stable revenue despite the pressure of low interest rates and solid credit results, as reflected in very low net loan losses during a challenging time. Non-PPP loan volumes stabilized, with period-end loans flat with the third quarter, while deposits continued to exhibit very strong growth, with average deposits up an annualized 10.6% over the third quarter, and 20.3% over the same quarter a year ago.”

Mr. Simmons continued, “We are also pleased with the strength of our capital, as demonstrated by growth in our CET1 ratio to 10.8% from 10.2% in the year-ago period. Finally, with recently passed legislation authorizing a second round of PPP loans, we are working hard to deliver this aid to many thousands of small businesses throughout our footprint.”
OPERATING PERFORMANCE3
chart-fab1eaf58664406b80a1a.jpgchart-58aff39dda2746048571a.jpg
*Excluding the $30 million charitable contribution in the third quarter of 2020, the efficiency ratio for 2020 would have been 58.3%.
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 20-23.
4 EPS calculations assume a 24.7% statutory tax rate.


ZIONS BANCORPORATION, N.A.
Press Release – Page 2
January 19, 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
4Q20 - 3Q204Q20 - 4Q19
(In millions)4Q203Q204Q19$%$%
Interest and fees on loans$499 $505 $557 $(6)(1)%$(58)(10)%
Interest on money market investments3 2 7 1 50 (4)(57)
Interest on securities69 74 83 (5)(7)(14)(17)
Total interest income
571 581 647 (10)(2)(76)(12)
Interest on deposits13 18 62 (5)(28)(49)(79)
Interest on short and long-term borrowings8 8 26 — — (18)(69)
Total interest expense
21 26 88 (5)(19)(67)(76)
Net interest income
$550 $555 $559 $(5)(1)$(9)(2)
bpsbps
Yield on interest-earning assets1
3.06 %3.20 %4.00 %(14)(94)
Rate paid on total deposits and interest-bearing liabilities1
0.12 %0.15 %0.57 %(3)(45)
Cost of total deposits1
0.08 %0.11 %0.44 %(3)(36)
Net interest margin1
2.95 %3.06 %3.46 %(11)(51)
1 Rates are calculated using amounts in thousands and taxable-equivalent rates are used where applicable.
Net interest income decreased $9 million, or 2%, to $550 million in the fourth quarter of 2020 from $559 million in the fourth quarter of 2019. Total interest income decreased $76 million, or 12%, due to a $58 million decrease in interest and fees on loans and a $14 million decrease in interest on securities; the decrease is primarily attributable to the lower interest rate environment, as the average balance of interest-earning assets increased 16%. Interest expense decreased $67 million, or 76%, due to a $49 million decline in interest paid on deposits and an $18 million decline in interest paid on short and long-term borrowings attributable to lower rates on both categories as well as reduced balances of borrowed funds. The decline in interest expense is also primarily attributable to the lower interest rate environment and partially attributable to reduced competitive pricing pressure for deposits. Additionally, strong deposit growth of $12.6 billion, or 22%, reduced the need for borrowed funds and was impacted by various government stimulus programs.
The net interest margin declined to 2.95% in the fourth quarter of 2020, compared with 3.06% in the third quarter of 2020, and 3.46% in the same prior year period. The yield on average interest-earning assets was 3.06%, a decrease of 14 basis points, compared with the third quarter of 2020, and a decrease of 94 basis points, compared with the fourth quarter of 2019. Average money market investments increased to 7.2% of average interest-earning assets in the fourth quarter of 2020, compared with 4.3% in the third quarter of 2020, and 2.2% a year ago. This increase had a significant dilutive effect on the net interest margin.
The yield on average interest-earning assets included $6.3 billion of Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans with a yield of 3.50%, which was modestly below the yield on the non-
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ZIONS BANCORPORATION, N.A.
Press Release – Page 3
January 19, 2021
PPP loan portfolio of 3.74%. During the fourth quarter of 2020, about 9,900 PPP loans, totaling $1.3 billion, received forgiveness by the SBA and contributed $26 million of interest income through accelerated recognition of net unamortized deferred fees on these loans. Additionally, on December 27, 2020, the Consolidated Appropriations Act was signed into law, which extends the PPP and provides government funding for additional forgivable PPP loans. These developments, and other potential future program changes, will affect PPP interest income and the effective yield of the PPP loans in future periods.
The yield on loans decreased 85 basis points from the fourth quarter of 2019, primarily due to the aforementioned decline in benchmark interest rates and continued competitive pricing pressure, which impacted loans across all major loan categories. The yield on securities decreased 52 basis points from the year ago period, primarily from lower yields on new investments, which were also attributable to lower benchmark interest rates.
The annualized cost of total deposits for the fourth quarter of 2020 was 0.08%, compared with 0.44% for the fourth quarter of 2019. The rate paid on total deposits and interest-bearing liabilities was 0.12% for the fourth quarter of 2020, a decrease from 0.57% for the fourth quarter of 2019. The decline in the rate paid on total deposits and interest-bearing liabilities was primarily due to lower benchmark interest rates, combined with strong deposit growth and average noninterest bearing deposits as a percentage of total deposits rising to 47% from 42% a year ago. The deposit growth also allowed the Bank to significantly reduce more-costly borrowed funds when compared with the fourth quarter of 2019.
Noninterest Income
4Q20 - 3Q204Q20 - 4Q19
(In millions)4Q203Q204Q19$%$%
Commercial account fees$32 $32 $31 $— — %$1 3 %
Card fees22 21 23 1 5 (1)(4)
Retail and business banking fees18 17 20 1 6 (2)(10)
Loan-related fees and income25 32 19 (7)(22)6 32 
Capital markets and foreign exchange fees19 16 19 3 19 — — 
Wealth management and trust fees16 14 16 2 14 — — 
Other customer-related fees7 7 6 — — 1 17 
Customer-related fees
139 139 134 — — 5 4 
Fair value and nonhedge derivative income8 8 6 — — 2 33 
Dividends and other income7 6 10 1 17 (3)(30)
Securities gains, net12 4 2 8 NM10 NM
Total noninterest income
$166 $157 $152 $9 6 $14 9 

Total noninterest income for the fourth quarter of 2020 increased by $14 million, or 9%, to $166 million from $152 million for the fourth quarter of 2019. Total customer-related fees increased to $139 million from $134 million for the same periods. Loan-related fees and income increased $6 million due to residential mortgage loan originations and sales, which benefited from the reduction in benchmark interest rates and our enhanced customer-facing digital fulfillment process. Retail and business banking fees decreased by $2 million primarily due to less customer activity, in addition to fee waivers, as a result of the COVID-19 pandemic.
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ZIONS BANCORPORATION, N.A.
Press Release – Page 4
January 19, 2021
In the fourth quarter of 2020, the Bank recognized a positive $8 million credit valuation adjustment (“CVA”) on client-related interest rate swaps, compared with a positive $6 million CVA in the fourth quarter of 2019. Dividends and other income decreased to $7 million in the fourth quarter of 2020 from $10 million in the fourth quarter of 2019, primarily due to lower dividends received from the Federal Home Loan Bank (“FHLB”), reflecting less FHLB stock held by the Bank. Securities gains increased by $10 million, primarily as a result of realized gains on the sale of Farmer Mac Class C stock.
Noninterest Expense
4Q20 - 3Q204Q20 - 4Q19
(In millions)4Q203Q204Q19$%$%
Salaries and employee benefits$277 $269 $305 $8 3 %$(28)(9)%
Occupancy, net33 33 34 — — (1)(3)
Furniture, equipment and software, net30 32 34 (2)(6)(4)(12)
Other real estate expense, net1 — — 1 NM1 NM
Credit-related expense6 6 5 — — 1 20 
Professional and legal services19 12 13 7 58 6 46 
Advertising6 7 3 (1)(14)3 NM
FDIC premiums6 7 6 (1)(14)— — 
Other46 76 72 (30)(39)(26)(36)
Total noninterest expense
$424 $442 $472 $(18)(4)$(48)(10)
Adjusted noninterest expense 1
$423 $440 $435 $(17)(4)$(12)(3)
1 For information on non-GAAP financial measures, see pages 20-23.
Noninterest expense for the fourth quarter of 2020 was $424 million, a decrease of $48 million, or 10%, when compared with $472 million for the fourth quarter of 2019. The decrease was primarily attributable to a $28 million decrease in salaries and employee benefits expense and a decrease of $26 million in other noninterest expense. Salaries and employee benefits expense declined primarily as a result of the 5% workforce reduction announced in October 2019, which resulted in a $22 million severance charge in the fourth quarter of 2019. Other noninterest expense in the fourth quarter of 2019 included a $13 million impairment on owned or leased properties from branch and other office building closures, and $10 million of customer reimbursements made by the Bank to remedy a self-identified operational issue. Other noninterest expense also declined due to a $5 million decrease in travel and entertainment expenses.
These decreases in noninterest expense were partially offset by a $6 million increase in professional and legal services related to technology spend and third-party assistance related to PPP loan forgiveness, as well as a $3 million increase in advertising expense primarily associated with our efforts to retain "new to Bank" PPP recipients.
Adjusted noninterest expense for the fourth quarter of 2020 decreased $12 million, or 3%, to $423 million, compared with $435 million for the same prior year period. The efficiency ratio improved to 60.2% in the fourth quarter of 2020, compared with 62.2% for the third quarter of 2020, and 61.3% the fourth quarter of 2019. For information on non-GAAP financial measures, including differences between noninterest expense and adjusted noninterest expense, see pages 20-23.
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ZIONS BANCORPORATION, N.A.
Press Release – Page 5
January 19, 2021
BALANCE SHEET ANALYSIS
Asset Quality
4Q20 - 3Q204Q20 - 4Q19
(In millions)4Q203Q204Q19bpsbps
Ratio of nonperforming assets to loans and leases and other real estate owned
0.69 %0.68 %0.51 %1 18 
Annualized ratio of net loan and lease charge-offs to average loans
0.11 %0.38 %0.18 %(27)(7)
Ratio of total allowance for credit losses to loans1 and leases outstanding, at period end
1.56 %1.68 %1.14 %(12)42 
Ratio of total allowance for credit losses to loans1 and leases outstanding (excluding PPP loans), at period end
1.74 %1.91 %1.14 %(17)60 
$%$%
Classified loans$1,641 $1,639 $803 $2 — %$838 NM
Nonperforming assets371 372 251 (1)— 120 48
Net loan and lease charge-offs15 52 22 (37)(71)(7)(32)
Provision for credit losses(67)55 4 (122)NM(71)NM
1 Does not include loans held for sale.
Net loan and lease charge-offs were $15 million in the fourth quarter of 2020, compared with $22 million in the fourth quarter of 2019. The ratio of nonaccrual loans and accruing loans past due 90 days or more to loans and leases (ex-PPP) was 0.79% for the fourth quarter of 2020, compared with 0.52% for the fourth quarter of 2019. The ratio of classified loans to total loans and leases (ex-PPP) was 3.4%, compared with 1.6% for the same periods, respectively.
During 2020, the Bank provided payment deferrals or other payment modifications related to COVID-19 hardships, with respect to approximately $4.3 billion of total loan balances. As of December 31, 2020, $3.8 billion was outstanding, of which $3.4 billion, or 89%, had payments deferred, while the remaining $0.4 billion, or 11%, had their regularly scheduled payments otherwise modified, and approximately $42 million, or 1.1%, were 90 days or more past due. As of December 31, 2020, about $234 million, or 0.5%, of total loan balances (ex-PPP) were actively in a deferral related to COVID-19, including re-deferrals.
The Bank recorded a negative $67 million provision for credit losses during the fourth quarter of 2020, compared with a positive $55 million during the third quarter of 2020, and a positive $4 million for the fourth quarter of 2019. The allowance for credit losses (“ACL”) was $835 million at December 31, 2020, compared with $917 million at September 30, 2020, and $554 million at December 31, 2019. The ACL decreased from September 30, 2020, as economic forecasts and both experienced and expected credit quality improved. The increase in the ACL, compared with the same prior year period, is primarily due to the economic stress caused by the COVID-19 pandemic. The ratio of total ACL to total loans and leases (ex-PPP) was 1.74% at December 31, 2020, compared with 1.91% at September 30, 2020, and 1.14% at December 31, 2019.
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ZIONS BANCORPORATION, N.A.
Press Release – Page 6
January 19, 2021
Loans and Leases
4Q20 - 3Q204Q20 - 4Q19
(In millions)4Q203Q204Q19$%$%
Loans held for sale$81 $89 $129 $(8)(9)%$(48)(37)%
Loans and leases:
Commercial – excluding PPP loans
24,900 24,704 25,388 196 1 (488)(2)
Commercial – PPP loans
5,572 6,810 — (1,238)(18)5,572 NM
Commercial real estate
12,104 12,027 11,555 77 1 549 5 
Consumer
10,900 11,204 11,766 (304)(3)(866)(7)
Loans and leases, net of unearned income and fees53,476 54,745 48,709 (1,269)(2)4,767 10 
Less allowance for loan losses
777 853 495 (76)(9)282 57 
Loans and leases held for investment, net of allowance
$52,699 $53,892 $48,214 $(1,193)(2)$4,485 9 

Loans and leases, net of unearned income and fees, increased $4.8 billion, or 10%, to $53.5 billion at December 31, 2020, from $48.7 billion at December 31, 2019, primarily due to the origination of PPP loans. Excluding PPP loans, commercial loans decreased by $488 million, as the stressed economic environment adversely impacted demand for these loans. Within commercial loans, a $1.3 billion decrease in commercial and industrial loans was partially offset by increases of $558 million in municipal loans and $284 million in owner-occupied commercial loans. Term commercial real estate loans increased $415 million. Consumer loans decreased $866 million, which was spread across all consumer loan subcategories. Unfunded lending commitments and letters of credit increased $900 million, or 3.8%, to $24.8 billion at December 31, 2020, from $23.9 billion at December 31, 2019, primarily due to a decrease in commitment utilization.
Oil and Gas-Related Exposure1
4Q20 - 3Q204Q20 - 4Q19
(In millions)4Q203Q204Q19$%$%
Loans and leases
Upstream$916 $965 $1,041 $(49)(5)%$(125)(12)%
Midstream814 853 863 (39)(5)(49)(6)
Oil and gas services392 417 439 (25)(6)(47)(11)
Downstream197 210 158 (13)(6)39 25 
Total loan and lease balances2
2,319 2,445 2,501 (126)(5)(182)(7)
Unfunded lending commitments1,868 1,884 2,171 (16)(1)(303)(14)
Total oil and gas credit exposure$4,187 $4,329 $4,672 $(142)(3)$(485)(10)
Credit quality measures% pts% pts
Nonaccrual loan ratio2.7 %3.2 %0.7 %(0.5)2.0 
Ratio of nonaccrual loans that are current92.1 %74.4 %66.7 %17.7 25.4 
Net charge-off ratio, annualized3
2.1 %3.4 %0.5 %(1.3)1.6 
1Because many borrowers operate in multiple businesses, judgment has been applied in characterizing a borrower as oil and
gas-related, including a particular segment of oil and gas-related activity, e.g., upstream or midstream; typically, 50% of
revenues coming from the oil and gas sector is used as a guide.
2Total oil and gas-related loan and lease balances at both December 31, 2020 and September 30, 2020 include approximately $171 million of PPP loans, respectively.
3Calculated as the ratio of annualized net charge-offs for each respective period to loan balances at each period end.
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ZIONS BANCORPORATION, N.A.
Press Release – Page 7
January 19, 2021
At December 31, 2020 and December 31, 2019, oil and gas-related loans represented 4% and 5% of the total loan portfolio, respectively. Due to active risk management of the portfolio, the mix of oil and gas-related loans at December 31, 2020 consists of 40% upstream, 35% midstream, 17% oil and gas-related services, and 8% downstream, compared with 42%, 34%, 18%, and 6%, respectively, at December 31, 2019. Upstream loans are made to reserve-based borrowers, and approximately 81% of the upstream loans are collateralized by the value of the borrower’s oil and gas reserves. For the fourth quarter of 2020, the oil and gas-related classified loan ratio was 11.9%, the annualized net charge-off ratio was 2.1%, and the allowance for credit losses related to oil and gas-related loans was 4.5%.
Deposits and Borrowed Funds
4Q20 - 3Q204Q20 - 4Q19
(In millions)4Q203Q204Q19$%$%
Noninterest-bearing demand$32,494 $31,338 $23,576 $1,156 4 %$8,918 38 %
Interest-bearing:
Savings and money market
34,571 32,305 28,790 2,266 7 5,781 20 
Time
2,588 3,451 4,719 (863)(25)(2,131)(45)
Total deposits$69,653 $67,094 $57,085 $2,559 4 $12,568 22 
Borrowed funds:
Federal funds purchased and other short-term borrowings$1,572 $1,252 $2,053 $320 26 $(481)(23)
Long-term debt1,336 1,347 1,723 (11)(1)(387)(22)
Total borrowed funds$2,908 $2,599 $3,776 $309 12 $(868)(23)

Total deposits increased by $12.6 billion, or 22%, to $69.7 billion as of December 31, 2020, primarily due to an $8.9 billion increase in noninterest-bearing deposits, which was impacted by various government stimulus programs.
Average total deposits increased to $68.3 billion for the fourth quarter of 2020, compared with $56.7 billion for the fourth quarter of 2019. Average noninterest-bearing deposits increased 35% to $32.0 billion for the fourth quarter of 2020, from $23.8 billion for the fourth quarter of 2019, and were 47% and 42% of average total deposits, respectively, for the same periods.
Total borrowed funds decreased $0.9 billion, or 23%, to $2.9 billion as of December 31, 2020. Average borrowed funds decreased to $2.7 billion for the fourth quarter of 2020, compared with $4.3 billion for the fourth quarter of 2019. The decrease in both end-of-period and average borrowed funds reflects less reliance on federal funds purchased and other short-term borrowings due to the strength of deposit growth, which significantly exceeded earning asset growth over this period.
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ZIONS BANCORPORATION, N.A.
Press Release – Page 8
January 19, 2021
Shareholders’ Equity
4Q20 - 3Q204Q20 - 4Q19
(In millions)4Q203Q204Q19$%$%
Shareholders’ equity:
Preferred stock
$566 $566 $566 $— — %$— — %
Common stock and additional paid-in capital
2,686 2,680 2,735 6 — (49)(2)
Retained earnings
4,309 4,090 4,009 219 5 300 7 
Accumulated other comprehensive income
325 332 43 (7)(2)282 NM
Total shareholders' equity$7,886 $7,668 $7,353 $218 3 $533 7 
Capital distributions:
Common dividends paid
$56 $56 $57 $— — $(1)(2)
Bank common stock repurchased
— — 275 — NM(275)NM
Total capital distributed to common shareholders$56 $56 $332 $— — $(276)(83)

Shareholders’ Equity
During the fourth quarter of 2020, the Bank’s common stock dividend was $0.34 per share, the same as the fourth quarter of 2019. Accumulated other comprehensive income improved $282 million to $325 million as of December 31, 2020, compared with $43 million as of December 31, 2019. The improvement was primarily a result of increases in the fair value of available-for-sale securities due to changes in interest rates. Weighted average diluted shares outstanding decreased 14.8 million from the fourth quarter of 2019, primarily due to the out-of-the-money expiration of 29.2 million ZIONW warrants on May 22, 2020.
Tangible book value per common share increased to $38.42 at December 31, 2020, compared with $34.98 at December 31, 2019. Basel III common equity tier 1 (“CET1”) capital was $6.0 billion at December 31, 2020 and $5.7 billion at December 31, 2019. The estimated Basel III CET1 capital ratio was 10.8% at December 31, 2020, compared with 10.2% at December 31, 2019. For information on non-GAAP financial measures, see pages 20-23.
On January 1, 2020, the Bank adopted Accounting Standards Update (“ASU”) 2016-13, Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and its subsequent updates, often referred to as the Current Expected Credit Loss ("CECL") accounting standard. The OCC, Federal Reserve and FDIC issued a joint statement on March 27, 2020, revised on April 7, 2020, with proposed guidance for banking institutions that have adopted CECL in 2020. The Bank adopted the provisions of this interim final rule, which allows banks to add back, for regulatory capital purposes only, a transition adjustment related to CECL beginning with the first quarter 2020 financial statements. The adoption of these provisions improved our CET1 capital ratio at December 31, 2020 by 10 basis points.
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ZIONS BANCORPORATION, N.A.
Press Release – Page 9
January 19, 2021
Supplemental Presentation and Conference Call
Zions has posted a supplemental presentation to its website, which will be used to discuss these fourth quarter results at 5:30 p.m. ET this afternoon (January 19, 2021). Media representatives, analysts, investors and the public are invited to join this discussion by calling (253) 237-1247 (domestic and international) and entering the passcode 7491914, 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.
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 $80 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 9th largest provider in the U.S. of the SBA’s Paycheck Protection Program loans. 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, market trends, industry results or regulatory outcomes to differ materially from those expressed or implied by such forward-looking statements.
Without limiting the foregoing, the words “forecasts,” “targets,” “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “would,” “will” and the negative thereof and similar words and expressions are intended to identify forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about future financial and operating results. Actual results and outcomes may differ materially from those presented, either expressed or implied, in the release. Important risk factors that may cause such material differences include, but are not limited to, the effects of the spread of the virus commonly referred to as the coronavirus or COVID-19 (and other potentially similar pandemic situations) and associated impacts on general economic conditions on, among other things, our customers’ ability to make timely payments on obligations, fee income revenue due to reduced loan origination activity and card swipe income, operating expense due to alternative approaches to doing business, and so forth; 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 as
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ZIONS BANCORPORATION, N.A.
Press Release – Page 10
January 19, 2021
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.
We caution you against undue reliance on forward-looking statements, which reflect our views only as of the date they are made. Except as may be 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 11
January 19, 2021
FINANCIAL HIGHLIGHTS
(Unaudited)
Three Months Ended
(In millions, except share, per share, and ratio data)December 31,
2020		September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019
BALANCE SHEET 1
Loans held for investment, net of allowance$52,699 $53,892 $54,269 $49,197 $48,214 
Total assets81,476 78,357 76,447 71,467 69,172 
Deposits69,653 67,094 65,684 57,518 57,085 
Total shareholders’ equity7,886 7,668 7,575 7,472 7,353 
STATEMENT OF INCOME
Net earnings applicable to common shareholders
$275 $167 $57 $6 $174 
Net interest income550 555 563 548 559 
Taxable-equivalent net interest income 2
557 562 569 555 566 
Total noninterest income166 157 117 134 152 
Total noninterest expense424 442 430 408 472 
Adjusted pre-provision net revenue 2
280 267 300 299 275 
Provision for credit losses(67)55 168 258 4 
SHARE AND PER COMMON SHARE AMOUNTS
Net earnings per diluted common share$1.66 $1.01 $0.34 $0.04 $0.97 
Dividends0.34 0.34 0.34 0.34 0.34 
Book value per common share 1
44.61 43.30 42.74 42.15 41.12 
Tangible book value per common share 1, 2
38.42 37.11 36.56 35.96 34.98 
Weighted average share price36.86 32.09 31.53 41.02 48.39 
Weighted average diluted common shares outstanding (in thousands)
163,900 163,779 164,425 172,998 178,718 
Common shares outstanding (in thousands) 1
164,090 164,009 163,978 163,852 165,057 
SELECTED RATIOS AND OTHER DATA
Return on average assets1.41 %0.89 %0.35 %0.08 %1.04 %
Return on average common equity15.3 %9.4 %3.3 %0.3 %10.1 %
Return on average tangible common equity 2
17.8 %11.0 %3.8 %0.4 %11.8 %
Net interest margin2.95 %3.06 %3.23 %3.41 %3.46 %
Cost of total deposits, annualized0.08 %0.11 %0.15 %0.36 %0.44 %
Efficiency ratio 2
60.2 %62.2 %57.3 %57.7 %61.3 %
Effective tax rate20.9 %18.6 %19.5 %12.5 %22.1 %
Ratio of nonperforming assets to loans and leases and other real estate owned
0.69 %0.68 %0.62 %0.56 %0.51 %
Annualized ratio of net loan and lease charge-offs to average loans0.11 %0.38 %0.23 %0.06 %0.18 %
Ratio of total allowance for credit losses to loans and leases outstanding 1
1.56 %1.68 %1.66 %1.56 %1.14 %
Full-time equivalent employees
9,678 9,726 9,859 9,879 10,188 
CAPITAL RATIOS AND DATA 1
Common equity tier 1 capital$6,013 $5,804 $5,696 $5,667 $5,719 
Risk-weighted assets 3
55,864 55,654 55,878 56,861 56,039 
Tangible common equity ratio7.8 %7.9 %7.9 %8.4 %8.5 %
Common equity tier 1 capital ratio 3
10.8 %10.4 %10.2 %10.0 %10.2 %
Tier 1 leverage ratio 3
8.3 %8.3 %8.4 %9.0 %9.2 %
Tier 1 risk-based capital ratio 3
11.8 %11.4 %11.2 %11.0 %11.2 %
Total risk-based capital ratio 3
14.1 %13.7 %13.5 %13.2 %13.2 %
1    At period end.
2    For information on non-GAAP financial measures, see pages 20-23.
3 Current period ratios and amounts represent estimates.
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ZIONS BANCORPORATION, N.A.
Press Release – Page 12
January 19, 2021
CONSOLIDATED BALANCE SHEETS
(In millions, shares in thousands)December 31,
2020		September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
ASSETS
Cash and due from banks$543 $576 $570 $730 $705 
Money market investments:
Interest-bearing deposits1,074 856 1,579 1,225 743 
Federal funds sold and security resell agreements5,765 2,804 266 550 484 
Investment securities:
Held-to-maturity1, at amortized cost
636 592 688 585 592 
Available-for-sale, at fair value15,731 14,662 14,201 14,231 13,725 
Trading account, at fair value266 198 160 160 182 
Total securities, net of allowance16,633 15,452 15,049 14,976 14,499 
Loans held for sale81 89 105 140 129 
Loans and leases, net of unearned income and fees53,476 54,745 55,129 49,927 48,709 
Less allowance for loan losses777 853 860 730 495 
Loans held for investment, net of allowance52,699 53,892 54,269 49,197 48,214 
Other noninterest-bearing investments817 830 813 916 898 
Premises, equipment and software, net1,209 1,187 1,173 1,144 1,142 
Goodwill and intangibles1,015 1,016 1,014 1,014 1,014 
Other real estate owned4 6 5 6 8 
Other assets1,636 1,649 1,604 1,569 1,336 
Total assets$81,476 $78,357 $76,447 $71,467 $69,172 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand$32,494 $31,338 $30,714 $24,380 $23,576 
Interest-bearing:
Savings and money market34,571 32,305 31,307 28,901 28,790 
Time2,588 3,451 3,663 4,237 4,719 
Total deposits69,653 67,094 65,684 57,518 57,085 
Federal funds purchased and other short-term borrowings
1,572 1,252 860 3,765 2,053 
Long-term debt1,336 1,347 1,353 1,795 1,723 
Reserve for unfunded lending commitments58 64 54 47 59 
Other liabilities971 932 921 870 899 
Total liabilities73,590 70,689 68,872 63,995 61,819 
Shareholders’ equity:
Preferred stock, without par value; authorized 4,400 shares566 566 566 566 566 
Common stock2 ($0.001 par value; authorized 350,000 shares) and additional paid-in capital
2,686 2,680 2,675 2,668 2,735 
Retained earnings4,309 4,090 3,979 3,979 4,009 
Accumulated other comprehensive income325 332 355 259 43 
Total shareholders’ equity7,886 7,668 7,575 7,472 7,353 
Total liabilities and shareholders’ equity$81,476 $78,357 $76,447 $71,467 $69,172 
1 Held-to-maturity (approximate fair value)
$640 $596 $691 $587 $597 
2 Common shares (issued and outstanding)
164,090 164,009 163,978 163,852 165,057 
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ZIONS BANCORPORATION, N.A.
Press Release – Page 13
January 19, 2021
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
(In millions, except share and per share amounts)December 31,
2020		September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019
Interest income:
Interest and fees on loans$499 $505 $514 $532 $557 
Interest on money market investments3 2 1 8 7 
Interest on securities69 74 80 82 83 
Total interest income571 581 595 622 647 
Interest expense:
Interest on deposits13 18 23 51 62 
Interest on short- and long-term borrowings8 8 9 23 26 
Total interest expense21 26 32 74 88 
Net interest income550 555 563 548 559 
Provision for credit losses:
Provision for loan losses(61)45 161 240 7 
Provision for unfunded lending commitments(6)10 7 18 (3)
Total provision for credit losses(67)55 168 258 4 
Net interest income after provision for credit losses617 500 395 290 555 
Noninterest income:
Commercial account fees32 32 30 31 31 
Card fees22 21 19 21 23 
Retail and business banking fees18 17 15 19 20 
Loan-related fees and income25 32 27 26 19 
Capital markets and foreign exchange fees19 16 18 24 19 
Wealth management and trust fees16 14 15 16 16 
Other customer-related fees7 7 6 6 6 
Customer-related fees139 139 130 143 134 
Fair value and nonhedge derivative income (loss)8 8 (12)(11)6 
Dividends and other income7 6 3 8 10 
Securities gains (losses), net12 4 (4)(6)2 
Total noninterest income166 157 117 134 152 
Noninterest expense:
Salaries and employee benefits277 269 267 274 305 
Occupancy, net33 33 32 33 34 
Furniture, equipment and software, net30 32 32 32 34 
Other real estate expense, net1 — — — — 
Credit-related expense6 6 6 4 5 
Professional and legal services19 12 10 12 13 
Advertising6 7 3 3 3 
FDIC premiums6 7 7 5 6 
Other46 76 73 45 72 
Total noninterest expense424 442 430 408 472 
Income before income taxes359 215 82 16 235 
Income taxes75 40 16 2 52 
Net income284 175 66 14 183 
Preferred stock dividends(9)(8)(9)(8)(9)
Net earnings applicable to common shareholders$275 $167 $57 $6 $174 
Weighted average common shares outstanding during the period:
Basic shares (in thousands)163,658 163,608 163,542 164,143 167,078 
Diluted shares (in thousands)163,900 163,779 164,425 172,998 178,718 
Net earnings per common share:
Basic$1.66 $1.01 $0.34 $0.04 $1.03 
Diluted1.66 1.01 0.34 0.04 0.97 
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ZIONS BANCORPORATION, N.A.
Press Release – Page 14
January 19, 2021
CONSOLIDATED STATEMENTS OF INCOME
Year Ended December 31,
(In millions, except share and per share amounts)202020192018
(Unaudited)
Interest income:
Interest and fees on loans$2,050 $2,289 $2,102 
Interest on money market investments14 32 29 
Interest on securities304 362 350 
Total interest income2,368 2,683 2,481 
Interest expense:
Interest on deposits105 254 135 
Interest on short- and long-term borrowings48 157 116 
Total interest expense153 411 251 
Net interest income2,215 2,272 2,230 
Provision for credit losses:
Provision for loan losses384 37 (39)
Provision for unfunded lending commitments29 2 (1)
Total provision for credit losses413 39 (40)
Net interest income after provision for loan losses1,802 2,233 2,270 
Noninterest income:
Commercial account fees125 121 122 
Card fees82 92 94 
Retail and business banking fees68 78 78 
Loan-related fees and income109 75 74 
Capital markets and foreign exchange fees77 78 58 
Wealth management and trust fees62 60 55 
Other customer-related fees26 21 27 
Customer-related fees549 525 508 
Fair value and nonhedge derivative income (loss)(6)(9)(1)
Dividends and other investment income24 43 44 
Securities gains, net7 3 1 
Total noninterest income574 562 552 
Noninterest expense:
Salaries and employee benefits1,087 1,141 1,070 
Occupancy, net130 133 132 
Furniture, equipment and software, net127 135 126 
Other real estate expense, net1 (3)1 
Credit-related expense22 20 25 
Professional and legal services52 47 52 
Advertising19 19 26 
FDIC premiums25 25 50 
Other241 225 197 
Total noninterest expense1,704 1,742 1,679 
Income before income taxes672 1,053 1,143 
Income taxes133 237 259 
Net income539 816 884 
Preferred stock dividends(34)(34)(34)
Net earnings applicable to common shareholders$505 $782 $850 
Weighted average common shares outstanding during the year:
Basic shares (in thousands)163,737 175,984 193,589 
Diluted shares (in thousands)165,613 186,504 206,501 
Net earnings per common share:
Basic$3.06 $4.41 $4.36 
Diluted3.02 4.16 4.08 
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ZIONS BANCORPORATION, N.A.
Press Release – Page 15
January 19, 2021
Loan Balances Held for Investment by Portfolio Type
(Unaudited)
(In millions)December 31,
2020		September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019
Commercial:
Commercial and industrial$13,444 $13,543 $14,076 $15,533 $14,760 
PPP5,572 6,810 6,690 — — 
Leasing320 319 324 331 334 
Owner occupied8,185 8,136 8,083 8,045 7,901 
Municipal2,951 2,706 2,535 2,483 2,393 
Total commercial30,472 31,514 31,708 26,392 25,388 
Commercial real estate:
Construction and land development2,345 2,298 2,367 2,257 2,211 
Term9,759 9,729 9,587 9,484 9,344 
Total commercial real estate12,104 12,027 11,954 11,741 11,555 
Consumer:
Home equity credit line2,745 2,797 2,856 2,958 2,917 
1-4 family residential6,969 7,209 7,393 7,567 7,568 
Construction and other consumer real estate630 633 640 629 624 
Bankcard and other revolving plans432 431 437 488 502 
Other124 134 141 152 155 
Total consumer10,900 11,204 11,467 11,794 11,766 
Loans and leases, net of unearned income and fees$53,476 $54,745 $55,129 $49,927 $48,709 

Nonperforming Assets
(Unaudited)
(In millions)December 31,
2020		September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019
Nonaccrual loans1
$367 $366 $339 $274 $243 
Other real estate owned4 6 5 6 8 
Total nonperforming assets$371 $372 $344 $280 $251 
Ratio of nonperforming assets to loans1 and leases and other real estate owned
0.69 %0.68 %0.62 %0.56 %0.51 %
Accruing loans past due 90 days or more$12 $9 $16 $8 $10 
Ratio of accruing loans past due 90 days or more to loans1 and leases
0.02 %0.02 %0.03 %0.02 %0.02 %
Nonaccrual loans and accruing loans past due 90 days or more
$379 $375 $355 $282 $253 
Ratio of nonaccrual loans and accruing loans past due 90 days or more to loans1 and leases
0.71 %0.68 %0.64 %0.56 %0.52 %
Accruing loans past due 30-89 days$112 $58 $168 $135 $75 
Restructured loans included in nonaccrual loans113 84 88 88 75 
Restructured loans on accrual198 197 197 79 78 
Classified loans1,641 1,639 1,477 881 803 
1 Includes loans held for sale.
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ZIONS BANCORPORATION, N.A.
Press Release – Page 16
January 19, 2021
Allowance for Credit Losses
(Unaudited)
Three Months Ended
(In millions)December 31,
2020		September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019
Allowance for Loan Losses
Balance at beginning of period1
$853 $860 $730 $497 $510 
Provision for loan losses(61)45 161 240 7 
Loan and lease charge-offs21 58 36 13 32 
Less: Recoveries6 6 5 6 10 
Net loan and lease charge-offs15 52 31 7 22 
Balance at end of period$777 $853 $860 $730 $495 
Ratio of allowance for loan losses to loans2 and leases, at period end
1.45 %1.56 %1.56 %1.46 %1.02 %
Ratio of allowance for loan losses to nonaccrual loans2 at period end
212 %242 %254 %266 %204 %
Annualized ratio of net loan and lease charge-offs to average loans
0.11 %0.38 %0.23 %0.06 %0.18 %
Reserve for Unfunded Lending Commitments
Balance at beginning of period1
$64 $54 $47 $29 $62 
Provision for unfunded lending commitments(6)10 7 18 (3)
Balance at end of period$58 $64 $54 $47 $59 
Allowance for Credit Losses
Allowance for loan losses$777 $853 $860 $730 $495 
Reserve for unfunded lending commitments58 64 54 47 59 
Total allowance for credit losses$835 $917 $914 $777 $554 
Ratio of total allowance for credit losses to loans2 and leases outstanding, at period end
1.56 %1.68 %1.66 %1.56 %1.14 %
Ratio of total allowance for credit losses to loans2 and leases outstanding (excluding PPP loans), at period end
1.74 %1.91 %1.88 %1.56 %1.14 %
1 Beginning balances at March 31, 2020 for the allowance for loan losses and reserve for unfunded lending commitments do not agree to their respective ending balances at December 31, 2019 because of the adoption of the CECL accounting standard; the allowance for loan losses was adjusted to $497 million, the reserve for unfunded lending commitments was adjusted to $29 million on January 1, 2020.
2 Does not include loans held for sale.
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ZIONS BANCORPORATION, N.A.
Press Release – Page 17
January 19, 2021
Nonaccrual Loans by Portfolio Type
(Unaudited)
(In millions)December 31,
2020		September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019
Loans held for sale$— $14 $— $— $— 
Commercial:
Commercial and industrial$140 $158 $172 $135 $110 
Leasing— 1 1 1 — 
Owner occupied76 81 68 65 65 
Municipal— — — — — 
Total commercial216 240 241 201 175 
Commercial real estate:
Construction and land development— — — — — 
Term31 37 23 15 16 
Total commercial real estate31 37 23 15 16 
Consumer:
Home equity credit line16 16 15 14 12 
1-4 family residential103 59 59 43 40 
Construction and other consumer real estate— — — — — 
Bankcard and other revolving plans1 — 1 1 — 
Other— — — — — 
Total consumer120 75 75 58 52 
Total nonaccrual loans$367 $366 $339 $274 $243 

Net Charge-Offs by Portfolio Type
(Unaudited)
(In millions)December 31,
2020		September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019
Commercial:
Commercial and industrial$15 $51 $26 $7 $19 
Leasing— — — — — 
Owner occupied— (1)2 (1)(1)
Municipal— — — — — 
Total commercial15 50 28 6 18 
Commercial real estate:
Construction and land development— — — — (1)
Term— 1 — — 2 
Total commercial real estate— 1 — — 1 
Consumer:
Home equity credit line— — — — 1 
1-4 family residential(1)— — (1)(1)
Construction and other consumer real estate— — — — — 
Bankcard and other revolving plans— 1 2 1 2 
Other1 — 1 1 1 
Total consumer loans— 1 3 1 3 
Total net charge-offs (recoveries)$15 $52 $31 $7 $22 
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ZIONS BANCORPORATION, N.A.
Press Release – Page 18
January 19, 2021
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)Three Months Ended
December 31, 2020September 30, 2020December 31, 2019
(In millions)Average balance
Average
yield/rate 1
Average balance
Average
yield/rate 1
Average balance
Average
yield/rate 1
ASSETS
Money market investments$5,450 0.21 %$3,116 0.25 %$1,440 1.92 %
Securities:
Held-to-maturity577 3.49 %672 3.39 %617 3.68 %
Available-for-sale14,926 1.70 %14,083 1.95 %13,771 2.25 %
Trading account198 4.55 %158 4.31 %173 4.36 %
Total securities15,701 1.81 %14,913 2.04 %14,561 2.33 %
Loans held for sale62 2.32 %86 4.32 %134 3.32 %
Loans held for investment:2
Commercial - excluding PPP loans24,583 3.91 %24,909 3.96 %25,258 4.65 %
Commercial - PPP loans6,310 3.50 %6,771 3.03 %— — %
Commercial real estate12,013 3.55 %11,986 3.52 %11,735 4.84 %
Consumer11,068 3.58 %11,327 3.60 %11,720 4.10 %
Total loans held for investment53,974 3.71 %54,993 3.68 %48,713 4.56 %
Total interest-earning assets75,187 3.06 %73,108 3.20 %64,848 4.00 %
Cash and due from banks601 583 675 
Allowance for credit losses on loans and debt securities(854)(852)(507)
Goodwill and intangibles1,016 1,015 1,014 
Other assets4,110 4,129 3,545 
Total assets$80,060 $77,983 $69,575 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
Savings and money market$33,305 0.09 %$32,111 0.11 %$28,138 0.56 %
Time2,925 0.76 %3,602 0.96 %4,808 1.84 %
Total interest-bearing deposits36,230 0.14 %35,713 0.20 %32,946 0.75 %
Borrowed funds:
Federal funds purchased and other short-term borrowings1,336 0.08 %1,078 0.09 %2,719 1.75 %
Long-term debt1,342 2.25 %1,353 2.32 %1,587 3.41 %
Total borrowed funds2,678 1.17 %2,431 1.33 %4,306 2.36 %
Total interest-bearing funds38,908 0.21 %38,144 0.27 %37,252 0.94 %
Noninterest-bearing deposits32,036 30,789 23,795 
Other liabilities1,384 1,406 1,096 
Total liabilities72,328 70,339 62,143 
Shareholders’ equity:
Preferred equity566 566 566 
Common equity7,166 7,078 6,866 
Total shareholders’ equity7,732 7,644 7,432 
Total liabilities and shareholders’ equity$80,060 $77,983 $69,575 
Spread on average interest-bearing funds2.85 %2.93 %3.06 %
Impact of net noninterest-bearing sources of funds0.10 %0.13 %0.40 %
Net interest margin2.95 %3.06 %3.46 %
Memo: total loans and leases, excluding PPP loans47,664 3.74 %48,222 3.77 %48,713 4.56 %
Memo: total cost of deposits0.08 %0.11 %0.44 %
Memo: total deposits and interest-bearing liabilities70,944 0.12 %68,933 0.15 %61,047 0.57 %
1 Rates are calculated using amounts in thousands and the statutory taxable-equivalent rates 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 19
January 19, 2021
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)Twelve Months Ended
December 31, 2020December 31, 2019December 31, 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$3,054 0.46 %$1,346 2.41 %$1,360 2.12 %
Securities:
Held-to-maturity618 3.54 %706 3.69 %781 3.56 %
Available-for-sale14,208 2.00 %14,389 2.36 %14,712 2.23 %
Trading account167 4.36 %147 4.45 %109 3.97 %
Total securities14,993 2.09 %15,242 2.45 %15,602 2.31 %
Loans held for sale96 3.89 %89 2.90 %53 4.63 %
Loans held for investment:2
Commercial - excluding PPP loans25,193 4.11 %24,990 4.86 %23,333 4.79 %
Commercial - PPP loans4,534 3.22 %— — %— — %
Commercial real estate11,854 3.87 %11,675 5.11 %11,079 4.95 %
Consumer11,435 3.71 %11,600 4.22 %11,013 4.04 %
Total loans held for investment53,016 3.89 %48,265 4.77 %45,425 4.65 %
Total interest-earning assets71,159 3.37 %64,942 4.17 %62,440 4.01 %
Cash and due from banks619 610 549 
Allowance for credit losses on loans and debt securities(733)(501)(495)
Goodwill and intangibles1,015 1,014 1,015 
Other assets3,997 3,506 3,060 
Total assets$76,057 $69,571 $66,569 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits:
Savings and money market$31,100 0.19 %$26,852 0.60 %$25,480 0.32 %
Time3,706 1.22 %4,868 1.94 %3,876 1.38 %
Total interest-bearing deposits34,806 0.30 %31,720 0.80 %29,356 0.46 %
Borrowed funds:
Federal funds purchased and other short-term borrowings
1,888 0.52 %4,719 2.36 %4,562 1.93 %
Long-term debt1,544 2.45 %1,236 3.69 %535 5.21 %
Total borrowed funds3,432 1.39 %5,955 2.64 %5,097 2.27 %
Total interest-bearing funds38,238 0.40 %37,675 1.09 %34,453 0.73 %
Noninterest-bearing deposits28,883 23,361 23,827 
Other liabilities1,320 1,004 699 
Total liabilities68,441 62,040 58,979 
Shareholders’ equity:
Preferred equity566 566 566 
Common equity7,050 6,965 7,024 
Total shareholders’ equity7,616 7,531 7,590 
Total liabilities and shareholders’ equity$76,057 $69,571 $66,569 
Spread on average interest-bearing funds2.97 %3.08 %3.28 %
Impact of net noninterest-bearing sources of funds0.18 %0.46 %0.33 %
Net interest margin3.15 %3.54 %3.61 %
Memo: total loans and leases, excluding PPP loans48,482 3.96 %48,265 4.77 %45,425 4.65 %
Memo: total cost of deposits0.17 %0.46 %0.25 %
Memo: total deposits and interest-bearing liabilities67,121 0.22 %61,036 0.67 %58,280 0.78 %
1 Rates are calculated using amounts in thousands and the statutory taxable-equivalent rates 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 20
January 19, 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. 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)December 31,
2020		September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019
Tangible Book Value per Common Share
Total shareholders’ equity (GAAP)$7,886 $7,668 $7,575 $7,472 $7,353 
Preferred stock(566)(566)(566)(566)(566)
Goodwill and intangibles(1,015)(1,016)(1,014)(1,014)(1,014)
Tangible common equity (non-GAAP)(a)$6,305 $6,086 $5,995 $5,892 $5,773 
Common shares outstanding (in thousands)(b)164,090 164,009 163,978 163,852 165,057 
Tangible book value per common share (non-GAAP)
(a/b)$38.42 $37.11 $36.56 $35.96 $34.98 
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ZIONS BANCORPORATION, N.A.
Press Release – Page 21
January 19, 2021
GAAP to Non-GAAP Reconciliations
(Unaudited)
Return on Average Tangible Common Equity (“ROTCE”) – this schedule also includes “net earnings applicable to common shareholders, excluding the effects of the adjustments, net of tax” and “average tangible common equity.” ROTCE is a non-GAAP financial measure that 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 about performance because they present measures of those assets that can generate income.
Three Months Ended
(Dollar amounts in millions)December 31,
2020		September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019
Return on Average Tangible Common Equity
Net earnings applicable to common shareholders (GAAP)
$275 $167 $57 $6 $174 
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)$275 $167 $57 $6 $174 
Average common equity (GAAP)$7,166 $7,078 $7,030 $6,924 $6,866 
Average goodwill and intangibles(1,016)(1,015)(1,014)(1,014)(1,014)
Average tangible common equity (non-GAAP)
(b)$6,150 $6,063 $6,016 $5,910 $5,852 
Number of days in quarter(c)92 92 91 91 92 
Number of days in year(d)366 366 366 366 365 
Return on average tangible common equity (non-GAAP)
(a/b/c)*d17.8 %11.0 %3.8 %0.4 %11.8 %


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ZIONS BANCORPORATION, N.A.
Press Release – Page 22
January 19, 2021
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 schedule 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.
Three Months Ended
(In millions)December 31,
2020		September 30,
2020		June 30,
2020		March 31,
2020		December 31,
2019
Efficiency Ratio
Noninterest expense (GAAP) (a)$424 $442 $430 $408 $472 
Adjustments:
Severance costs1 1 — — 22 
Other real estate expense, net1 — — — — 
Restructuring costs(1)1 — 1 15 
Pension termination-related expense— — 28 — — 
Total adjustments(b)1 2 28 1 37 
Adjusted noninterest expense (non-GAAP)(a-b)=(c)$423 $440 $402 $407 $435 
Net interest income (GAAP)
(d)$550 $555 $563 $548 $559 
Fully taxable-equivalent adjustments
(e)7 7 6 7 7 
Taxable-equivalent net interest income (non-GAAP)
(d+e)=(f)557 562 569 555 566 
Noninterest income (GAAP)(g)166 157 117 134 152 
Combined income (non-GAAP)(f+g)=(h)723 719 686 689 718 
Adjustments:
Fair value and nonhedge derivative income (loss)8 8 (12)(11)6 
Securities gains (losses), net12 4 (4)(6)2 
Total adjustments(i)20 12 (16)(17)8 
Adjusted taxable-equivalent revenue
(non-GAAP)
(h-i)=(j)$703 $707 $702 $706 $710 
Pre-provision net revenue (PPNR) (non-GAAP)
(h)-(a)$299 $277 $256 $281 $246 
Adjusted PPNR (non-GAAP)
(j)-(c)280 267 300 299 275 
Efficiency ratio (non-GAAP) 1
(c/j)60.2 %62.2 %57.3 %57.7 %61.3 %
1 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 23
January 19, 2021
Twelve Months Ended
(In millions)December 31,
2020		December 31,
2019
Efficiency Ratio 1
Noninterest expense (GAAP) (a)$1,704 $1,742 
Adjustments:
Severance costs1 25 
Other real estate expense1 (3)
Debt extinguishment cost— — 
Amortization of core deposit and other intangibles— 1 
Restructuring costs1 15 
Pension termination-related expense28 — 
Total adjustments(b)31 38 
Adjusted noninterest expense (non-GAAP)(a-b)=(c)$1,673 $1,704 
Net interest income (GAAP)
(d)$2,215 $2,272 
Fully taxable-equivalent adjustments
(e)28 26 
Taxable-equivalent net interest income (non-GAAP)
(d+e)=(f)2,243 2,298 
Noninterest income (GAAP)(g)574 562 
Combined income (non-GAAP)(f+g)=(h)2,817 2,860 
Adjustments:
Fair value and nonhedge derivative loss(6)(9)
Securities gains, net7 3 
Total adjustments(i)1 (6)
Adjusted taxable-equivalent revenue (non-GAAP)
(h-i)=(j)$2,816 $2,866 
Pre-provision net revenue (PPNR)
(h)-(a)$1,113 $1,118 
Adjusted PPNR (non-GAAP)
(j)-(c)1,143 1,162 
Efficiency ratio (non-GAAP) 2
(c/j)59.4 %59.5 %
1 Individual quarter information for the efficiency ratio may not sum to the year-to-date amounts due to rounding.
2 Excluding the $30 million charitable contribution, the efficiency ratio for the twelve months ended December 31, 2020 would have been 58.3%.
# # #
January 19, 2021 Fourth Quarter 2020 Financial Review

 
2 Forward-Looking Statements; Use of Non-GAAP Financial Measures Forward Looking Information These materials include “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and assumptions regarding future events or determinations, all of which are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, market trends, industry results or regulatory outcomes to differ materially from those expressed or implied by such forward-looking statements. Without limiting the foregoing, the words “forecasts,” “targets,” “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “would,” “will” and the negative thereof and similar words and expressions are intended to identify forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about future financial and operating results. Actual results and outcomes may differ materially from those presented, either expressed or implied, in these materials. Important risk factors that may cause such material differences include, but are not limited to, the effects of the spread of the virus commonly referred to as the coronavirus or COVID-19 (and other potentially similar pandemic situations) and associated impacts on general economic conditions on, among other things, our customers’ ability to make timely payments on obligations, fee income revenue due to reduced loan origination activity and card swipe income, operating expense due to alternative approaches to doing business, and so forth; 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 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. We caution you against undue reliance on forward-looking statements, which reflect our views only as of the date they are made. Except as may be 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. Use of Non-GAAP Financial Measures: This document contains several references to non-GAAP measures, including pre-provision net revenue and the “efficiency ratio,” which are common industry terms used by investors and financial services analysts. Certain of these non-GAAP measures are key inputs into Zions’ management compensation and are used in Zions’ strategic goals that have been and may continue to be articulated to investors. Therefore, the use of such non-GAAP measures are believed by management to be of substantial interest to the consumers of these financial disclosures and are used prominently throughout the disclosures. A full reconciliation of the difference between such measures and GAAP financials is provided within the document, and users of this document are encouraged to carefully review this reconciliation.

 
✓ Earnings and Profitability: ▪ $1.66 diluted earnings/share compared to $1.01 in 3Q20 ▪ $0.09/share benefit from credit valuation adjustment on client- related interest rate swaps (“CVA”) and securities gains ▪ $0.31/share benefit from the negative provision for credit losses, compared to the $0.25/share adverse impact from the positive provision for credit losses in the prior quarter ▪ $299 million Pre-Provision Net Revenue ▪ $280 million Adjusted PPNR(1), up 5% compared to 3Q20 ▪ ($67) million provision for credit loss, down from $55 million in 3Q20 ▪ $275 million: Net Income Applicable to Common, up from $167 million in the prior quarter ▪ $15 million: after tax benefit from CVA and securities gains ✓ Capital Strength: ▪ 10.8% Common Equity Tier 1 Ratio (CET1), up from 10.4% in 3Q20 ▪ 12.3% (CET1+Allowance for Credit Losses) / Risk-Weighted Assets 3 Fourth Quarter 2020 Financial Highlights Vs. 3Q20, strength in earnings due to reserve release, strengthening in capital ratios, credit quality stable to improved Note: For the purposes of comparison in this presentation, we generally use linked-quarter ("LQ"), due to that being the preferred comparison for professional investors and analysts. (1) Adjusted for items such as severance costs, restructuring costs, other real estate expense, pension termination-related expense, securities gains and losses and debt extinguishment costs. (2) The ACL of $835 million includes ~$1 million for PPP loans. See Appendix for GAAP to non-GAAP reconciliation tables. ✓ Credit quality (excluding PPP Loans): ▪ Stability in problem loans, improved net charge-offs ▪ 0.80%: ratio of NPAs+90 days past due / Loans and leases and OREO, flat when compared to 3Q20 ▪ 3.4%: Classified loans / total loans, flat when compared to 3Q20 ▪ 0.5%: Loans actively in deferral due to COVID-19 dropped by more than 90% from the peak in 2Q20 ▪ 13 basis points: net charge-offs (annualized) ▪ Decrease in the allowance for credit loss (“ACL”), reflecting the improvement in economic activity since the start of the COVID-19 pandemic in 1Q20 ▪ ACL was $835 million2 or 1.74% of non-PPP loans ▪ Allowance for Oil and Gas loans: 4.8% of non-PPP O&G loans

 
4 2020 Key Performance Indicators Although bottom line results fluctuated significantly in 2020 due to provision expense, core Adjusted PPNR was relatively stable $4.08 $4.16 $3.02 2018 2019 2020 Diluted Earnings Per Share 1.33% 1.17% 0.71% 2018 2019 2020 Return on Assets $1,132 $1,162 $1,143 2018 2019 2020 Adjusted Pre-Provision Net Revenue(1) 59.6% 59.5% 59.4% 2018 2019 2020 Efficiency Ratio(1) $884 $816 $539 2018 2019 2020 Net Income ($ millions) ($ millions) -0.04% 0.08% 0.22% 2018 2019 2020 Net Charge Offs / Avg Loans (Excluding PPP) Note: (1) See Appendix for GAAP to non-GAAP reconciliation tables. 2020 PPNR includes the net benefit of the PPP Round 1 loans but also does not remove the one-time charitable contribution of $30 million.

 
$0.97 $0.04 $0.34 $1.01 $1.66 4Q19 1Q20 2Q20 3Q20 4Q20 Diluted Earnings Per Share Notable Items: ▪ 4Q20: $0.09 per share benefit from securities gains and credit valuation adjustment on client-related interest rate swaps (“CVA”) ▪ 3Q20: ▪ $0.14 per share adverse impact from one-time charitable contribution related to PPP lending activity ▪ $0.06 per share gain on CVA and securities gains ▪ 2Q20: ▪ $0.13 per share adverse impact from pension termination-related expense ▪ $0.07 per share adverse impact from a negative CVA and securities losses ▪ 1Q20: $0.07 per share adverse impact from a negative CVA and securities losses ▪ 4Q19: ▪ $0.04 adverse impact from the resolution of a self- identified operational issue ▪ $0.03 per share gain on CVA and securities gains 5 Vs. 3Q20, EPS positively impacted by reduced provision for credit losses and increased fee income Diluted Earnings per Share

 
Adjusted Pre-Provision Net Revenue 6 Adjusted PPNR increased from 3Q20 as 3Q20 had a large charitable contribution expense (1) Adjusted for items such as severance, restructuring, securities gains and losses and debt extinguishment costs. See Appendix for GAAP to non-GAAP reconciliation table. Notable Items: ▪ 3Q20: $30 million adverse impact from a one-time charitable contribution related to PPP lending activity ▪ 4Q19: $10 million adverse impact from the resolution of a self-identified operational issue $275 $299 $300 $267 $280 $4 $258 $168 $55 -$67 -$100 -$50 $0 $50 $100 $150 $200 $250 $300 4Q19 1Q20 2Q20 3Q20 4Q20 Adjusted pre-provision net revenue (PPNR) Provision for Credit Losses Adjusted PPNR(1) and Provision for Credit Losses ($ millions)

 
1.04% 0.08% 0.35% 0.89% 1.41% 4Q19 1Q20 2Q20 3Q20 4Q20 11.80% 0.41% 3.81% 10.96% 17.80% 4Q19 1Q20 2Q20 3Q20 4Q20 Balance Sheet Profitability 7 Zions’ profitability in 4Q20 improved primarily due to the significant decline in the provision for credit losses Return on Assets Return on Tangible Common Equity

 
Round 2 – PPP 2.0: ▪ December 21, 2020: $284B authorized by the Consolidated Appropriations Act ▪ As of January 18, 2021: Processing more than 20,000 applications ▪ PPP 2.0 preparations: What is different this time?: ▪ Banker and technology optimized for 1/13/21 launch ▪ Consistent marketing and banker contact since June 30, 2020 ▪ Brand campaign in all markets featuring PPP 1.0 customer testimonials ▪ Digital outreach to 47,000+ PPP customers regarding services available ▪ Focused call program for 14,000 new-to-bank and 33,000 existing customers ▪ Since December 21, 2020 congressional approval of PPP 2.0 ▪ Multiple digital educational communications to ~ 200,000 customers ▪ Contacted 95% of 3,000 customers who used other banks for PPP ▪ Some banks choosing not to participate in PPP 2.0 Success Story: Summary of Paycheck Protection Program 8 PPP market leading comparative success a result of linking 1,500 frontline bankers with agile technology deployment (1) Source: Internal and S&P Global U.S. deposit market share as of 2019, including foreign banks doing business in the U.S., as well as credit unions; Source of SBA data is the SBA PPP Report. (2) Through December 31, 2020 Round 1 - PPP 1.0: ▪ Zions ranked 9th in PPP originations versus ranked 37th in U.S. Deposit Market Share(1) ▪ Performance represented 1/3 to 1/2 the levels originated by the top three banks ▪ Helped 47,000+ small businesses (14,700 new-to-bank customers) with nearly $7 billion in funds ▪ Significant portion of funding still in customer deposit accounts ▪ Forgiveness ▪ ~9,900 ($1.3 billion) approved by SBA ▪ ~29,000 loans ($540 million ) less than $50,000 qualify for streamlined processing

 
Success Story: PPP 1.0 – Building Relationships 9 Zions is experiencing excellent success in strengthening relationships with PPP customers ▪ ~30 % of PPP 1.0 loans were new-to-bank customers PPP 1.0 Loan Recipients Post PPP 1.0 PPP Loan Funding Remaining in Account (12/31/2020) Pre- PPP 1.0 Relationship New Loans New Services Existing Customers (32,500) $285 million ~1,200 loans 14,000 ~50% Deposits ~$3.8 billion Loans ~$3.6 billion New-to-bank Customers (14,700) $65 million ~500 loans 4,700 30% actively using DDA ~25% Not Applicable ▪ 14,700 “new-to-bank” PPP 1.0 recipients represent approx. one year of new client acquisition based on historical trends ▪ Strengthened banker interactions on 80% of the 32,500 customers receiving PPP loans ▪ New loans averaging greater than PPP average loan ▪ Pace of new loans or services initiated will be thoughtful as relationship knowledge matures

 
10 Success Story: Mortgage Banking Successes amid COVID-19 pandemic: very strong mortgage revenue 2019 ▪ Roll-out 2020 ▪ Enhanced Digital Fulfillment Process ▪ 87% of all applications taken digitally ▪ 25% reduction in turn-time allowing for record unit production 4Q20 ▪ Third straight strong funding quarter of more than $800 million ▪ Total pipeline is up more than 60% over same period last year ▪ Strong revenue increase combined with modest increase in operating expense ▪ Underwriting metrics remain strong: ▪ FICO: average 769 ▪ LTV: average 67% ▪ DTI: average 31% 31% 38% 40% 59% 47% 4Q19 1Q20 2Q20 3Q20 4Q20 Record Mortgage Funding HFI HFS $791 million $843 million ($ millions) $4.3 $14.0 $12.9 $17.5 $9.6 4Q19 1Q20 2Q20 3Q20 4Q20 Loan Sales Revenue

 
11 Credit Quality Ratios Zions entered the COVID-19 economic downturn with very clean credit quality Key Credit Metrics: ▪ Classified loans/loans: 3.4% ▪ NPAs+90(1)/loans + OREO: 0.80% ▪ Annualized net loan losses: ▪ 0.13% of average loans in 4Q20 ▪ 0.22% net charge-offs of average loans over the last 12 months Allowance for credit losses: ▪ 1.7% of total loans and leases ▪ $834 million of ACL ex-PPP loans ▪ $1 million of ACL for PPP loans ▪ 4.8% of oil & gas related of balances ($104 million) (1) Nonperforming assets plus loans that were ≥ 90 days past due. Note: Net Charge-offs/Loans ratio is annualized for all periods shown Nonperforming assets and classified loan ratios were averaged for the full year numbers, rather than using period-end ratios Credit Quality 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 2008Y 2009Y 2015Y 2016Y 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 NCOs / Loans (annualized) Classified / Loans NPAs +90/ Loans + OREO ACL / Loans ≈ ≈ Global Financial Crisis Oil & Gas Downturn Covid-19 Pandemic All Ratios Exclude PPP Loans

 
Deferrals and Delinquencies: A Positive Outcome Thus Far 12 Deferrals have receded from the 2Q20 high by more than 90%; nonaccrual and delinquency rates remain stable 6.3% 0.6% 0.5% 6/30/2020 9/30/2020 12/31/2020 Total Deferrals relative to total non-PPP loans 0.03% 0.02% 0.03% 0.70% 0.76% 0.76% 6/30/2020 9/30/2020 12/31/2020 Accruing 90+ Days Past Due Nonaccruals Loans 90+ Days Past Due relative to total non-PPP loans

 
Select Sub-Industries with Elevated Risk Related to COVID-19 13 COVID-19 Elevated Risk Loans: $4.0 billion (8.4%) of 4Q20 non-PPP loan balances (1) C19ER select industries with the most criticized loans include within broad industry groups: regional and neighborhood shopping centers (excludes standalone structures), advertising/marketing, other telecommunications, motion picture/video, full-service restaurants/bars, amusement parks, sports teams, sporting goods, passenger airlines, museums, daycare, real estate agents, hotel operations, bakeries, hazardous waste. ▪ Portions of broad industry groups with significant growth in criticized rates during 1H20 ▪ COVID-19 Elevated Risk portfolio strengths: ▪ Strong collateral coverage with 98% secured ▪ Greater proportion of customers received PPP (25% received PPP through Zions) and other stimulus ▪ COVID-19 Elevated Risk portfolio weaknesses: ▪ Greater deferral and problem loan ratios ▪ Some sectors (e.g. restaurants) struggled prior to COVID-19 COVID-19 Elevated Risk Loans Compared with All Other Lending (% of 4Q20 non-PPP loan balances) December 31, 2020 COVID-19 Oil & Gas Other Percent of Total Non-PPP Loans 8.4% 4.3% 87.3% Under Payment Deferral 29% 2% 6% PPP thru ZION 25% 13% 13% Secured by non-RE 31% 85% 25% Real Estate Secured 67% 10% 67% Median LTV 53% 58% 59% LTV >90% 3% 0% 1% CRE = Commercial Real Estate; C&I = Commercial and Industrial Loan to value (LTV) uses the Dec. 31, 2020 commitment and the most recent appraisal $0.04 $0.16 $0.20 $0.25 $0.37 $0.39 $0.44 $0.44 $0.62 $1.12 CI Cml Svc CI Food Bev Mfg WS CI Real Estate Construction CI Csmr Svc CI Transportation CI Retail CI Tech Telecom Media CI Ent. Rec. CRE Hotel-Motel CRE Retail $ billions COVID-19 Elevated Risk loans are less than 10% of total loans and have strong collateral coverage

 
Additional Recent Trends In Loan Balance, Credit Quality and Line Utilization 14 In 4Q, Zions experienced generally stable credit quality trends outside of COVID-19 Elevated Risk and Oil and Gas loans (excluding PPP loans) Loan Balances by Portfolio and Weighted Average Risk Grades $4.2 $4.3 $4.2 $4.1 $4.0 $ 2 .5 $ 2 .5 $ 2 .5 $ 2 .2 $ 2 .1 $42.1 $43.2 $41.9 $41.7 $41.8 4.0 5.0 6.0 7.0 8.0 9.0 10.0 4Q19 1Q20 2Q20 3Q20 4Q20 W e ig h te d A v e ra g e R is k G ra d e COVID-19 Oil & Gas Other 3 8 .9 % 4 3 .3 % 3 4 .1 % 2 9 .1 % 2 8 .4 % 4 7 .3 % 5 0 .4 % 5 1 .0 % 4 8 .9 % 4 7 .5 % 3 7 .9 % 4 1 .8 % 3 6 .3 % 3 4 .6 % 3 4 .6 % 4Q19 1Q20 2Q20 3Q20 4Q20 Line Utilization Rates(1) Utilization rates have receded from their Q1 peaks in both COVID-19 and other portfolios Negative grade migration is more pronounced within COVID-19 portfolios 3.1% 4.2% 12.3% 13.1% 13.8% 2 .2 % 3 .4 % 9 .1 % 1 1 .4 % 1 3 .3 % 1.5% 1.4% 1.8% 2.0% 1.9% 1.62% 1.93% 1.55% 2.19% 2.20% 0 .7 2 % 0 .6 6 % 2 .8 9 % 3 .4 3 % 3 .1 0 % 0.37% 0.40% 0.48% 0.53% 0.50% 4Q19 1Q20 2Q20 3Q20 4Q20 COVID-19 Oil & Gas Other Classified (larger ratio) and Nonaccruals (smaller ratio) 1.18% 0.22% 1.97% 1.66% 0.00% 0 .5 6 % 0 .1 0 % 0 .0 3 % 3 .5 3 % 2 .2 3 % 0.00% 0.02% 0.09% 0.12% 0.03% 4Q19 1Q20 2Q20 3Q20 4Q20 Net Charge-offs/Loans (1) Line Utilization refers to revolving loans only. Net charge-offs are annualized ratios.

 
15 Allowance for Credit Loss (“ACL”) Reserve decrease from 3Q20 reflects portfolio changes and a slight improvement in credit quality 526 777 914 917 8351.08 1.56 1.66 1.68 1.56 1.88 1.91 1.74 1/1/20 CECL 1Q20 2Q20 3Q20 4Q20 Allowance for Credit Loss ACL (%) ACL (%) ex-PPP The change in 4Q20 ACL from 3Q20 reflects: ▪ Economic improvement in line with previous quarter’s estimates ▪ Modest improvement in credit quality ▪ Change in portfolio mix, portfolio aging, pay downs, and decreased utilization • Changes to economic forecasts • New loans & renewals • Portfolio mix • Aging of existing loans • Draws, pay- offs, etc. • Changes in credit quality • Changes in specific reserves CECL Economic Forecast Assumptions • Probability weighting of four economic scenarios • Reasonable and supportable forecast period: 12 months; reversion to long- term average: 12 months • Economic factors vary depending upon the type of loan, but include various combinations of national, state, and MSA-level forecasts for variables such as unemployment, real estate price indices, energy prices, GDP, etc. • Currently the Base scenario shows steady economic improvement through 2022 ($ millions)

 
$559 $548 $563 $555 $550 3.46% 3.41% 3.23% 3.06% 2.95% 4Q19 1Q20 2Q20 3Q20 4Q20 Net Interest Income Net Interest Income Net Interest Margin 16 Changes in interest rates and balance sheet composition impact net interest income performance ($ millions) Net Interest Margin 3Q20 4Q20 MM and Securities Loan Yields Wholesale and Noninterest Bearing Sources of Funds Interest Bearing Deposits MM = Money Market investments. Capitalized interest income net of costs for PPP loan originations was $102 million, to be amortized over the remaining life (~4.25 years) or when loans pay down, pay off, or are forgiven by the SBA. Average money market investments increased to 7.2% of interest- earning assets in 4Q20, compared with 4.3% in the 3Q20, which had a nine basis point LQ dilutive effect on net interest margin.

 
4.56% 4.42% 3.83% 3.68% 3.71% $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 $65,000 $70,000 $75,000 4Q19 1Q20 2Q20 3Q20 4Q20 Average Total Loans Excluding PPP Loans, Yield: 3.74% in 4Q20 Average PPP Loans, Yield: 3.50% in 4Q20 Average Loan and Deposit Growth Average Total Loans Loan Yields Average Total Deposits Cost of Total Deposits 17 Average non-PPP loans declined slightly in 4Q20 compared to 3Q20, although period-end non-PPP loans were stable. Deposit growth remained very strong. 0.44% 0.36% 0.15% 0.11% 0.08% $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 $65,000 $70,000 $75,000 4Q19 1Q20 2Q20 3Q20 4Q20 ($ millions) ($ millions)

 
1.81% 2.06% 2.35% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 Through end of 2021 2022 2023-2024 Swaps Maturing Average Receive Fixed Rate (R-Axis)$ millions 4 7 % 1 2 % 1 0 % 8 % 1 2 % 1 1 % 3 2 % 1 2 % 1 4 % 9 % 2 2 % 1 1 % ≤ 3m 4-12m 1-2 yrs 2-3 yrs 3-5 yrs > 5 yrs P e rc e n t o f Lo a n s Loans: Rate Reset and Cash Flow Profile Loans After Hedging Interest Rate Sensitivity 18 The low and relatively flat interest rate environment and surge in deposits has resulted in increased asset sensitivity Source: Company filings and S&P Global; “Prior Fed Cycle” refers to 3Q15-2Q19, reflecting the lag effect of deposit pricing relative to Fed Funds rates. The “Current Fed Cycle” begins in 3Q19 to present. (1) 12-month simulated impact of an instantaneous and parallel change in interest rates. Loans are assumed to experience prepayments, amortization and maturity events, in addition to interest rate resets in the bottom-right chart. The loan and securities portfolios have durations of 2.0 and 2.8 years, respectively. (2) Text boxes Indicate the current net interest income contributions from the swaps set to mature each year ▪ Interest rate sensitivity reduced through interest rate hedges(2): ▪ $5.8B “in-the-money” floors embedded in loans ▪ $2.5B in securities purchases in 4Q20 with an average yield of 1.29% -3% 9% 18% −100 bps +100 bps +200 bps Net Interest Income Sensitivity (1) ● A ss u m e d ● H is to ri ca l In the down 100 scenario, models assume rates do not fall below zero 18% 20% 17% 15% 1% Prior Fed Cycle (+225 bps) Current Fed Cycle (-225 bps) +200 bps +100 bps −100 bps Total Deposit Betas $0.5 million $46 million $15 million

 
$134 $143 $130 $139 $139 4Q19 1Q20 2Q20 3Q20 4Q20 Customer-related fee income was stable from the prior quarter due to: ▪ Slightly improved revenue in commercial, card, and retail and business banking fees ▪ Loan related fees and income declined from 3Q20 due to mortgage banking activity ▪ Full year loan related fees were up 45% due to strength in mortgage banking activity ▪ Capital markets, Foreign Exchange, Wealth Management, and Trust increased 17%, attributable in part to improved interest rate swap sales and corporate trust services Noninterest Income 19 Customer-Related Fee Income (1) Total customer-related fee income was stable compared to 3Q20 (1) Reflects total customer-related noninterest income, which excludes items such as fair value and non-hedge derivative income, securities gains (losses), and other items, as detailed in the Noninterest Income table located in the earnings release. ($ millions)

 
$ 4 7 2 $ 4 0 8 $ 4 3 0 $ 4 4 2 $ 4 2 4 $ 4 3 5 $ 4 0 7 $ 4 0 2 $ 4 4 0 $ 4 2 3 4Q19 1Q20 2Q20 3Q20 4Q20 NIE (GAAP) Adjusted NIE (Non-GAAP) ($ millions) Noninterest Expense 20 Expense control remains a significant focus ▪ Total noninterest expense decreased 4% over the prior quarter ▪ Excluding the 3Q20 charitable contribution, total adjusted noninterest expense increased 3% over the prior quarter, predominately due to an increase to incentive compensation, which was the result of credit quality for 4Q20 and FY20 being better than expected at September 30, 2020. ▪ Notable items in: ▪ 3Q20: ▪ $30 million from one-time charitable contribution related PPP lending activity (not reflected in Adjusted NIE) ▪ 2Q20: ▪ $28 million of expense from termination of the defined benefit pension plan ▪ 4Q19: ▪ $22 million of severance costs ▪ $15 million of restructuring costs ▪ $10 million resolution of a self-identified operational issue (not reflected in Adjusted NIE) (1) Adjusted for items such as severance, provision for unfunded lending commitments, securities gains and losses and debt extinguishment costs. See Appendix for GAAP to non-GAAP reconciliation table. Noninterest Expense (NIE) (1)

 
Financial Outlook (4Q 2021E vs 4Q 2020A) 21 Outlook Comments Slightly Increasing ▪ Slight to moderate growth activity in the next twelve months, excluding PPP loans Slightly Increasing ▪ Assumes benchmark rates generally consistent with the forward curve ▪ Excludes PPP loan income Slightly Increasing ▪ Customer-related fees excludes securities gains, dividends Generally Stable ▪ Expect FY21 total GAAP noninterest expense to be approximately stable with the FY20 GAAP noninterest expense ($1.70 billion) ▪ Improved confidence in the economic outlook combined with rising capital ratios may allow for more active capital management Customer-Related Fees Loan Balances Net Interest Income Capital Management Adjusted Noninterest Expense

 
▪ Financial Results Summary ▪ Loan Growth ▪ Oil & Gas Portfolio Credit Quality and Portfolio Details ▪ GAAP to Non-GAAP Reconciliation 22 Appendix

 
Financial Results Summary 23 Solid and improving fundamental performance Three Months Ended (Dollar amounts in millions, except per share data) December 31, 2020 September 30, 2020 June 30, 2020 Earnings Results: Diluted Earnings Per Share $ 1.66 $ 1.01 $ 0.34 Net Earnings Applicable to Common Shareholders 275 167 57 Net Interest Income 550 555 563 Noninterest Income 166 157 117 Noninterest Expense 424 442 430 Pre-Provision Net Revenue - Adjusted (1) 280 267 300 Provision for Credit Losses (67) 55 168 Ratios: Return on Assets(2) 1.41 % 0.89 % 0.35 % Return on Common Equity(3) 15.3 % 9.4 % 3.3 % Return on Tangible Common Equity(3) 17.8 % 11.0 % 3.8 % Net Interest Margin 2.95 % 3.06 % 3.23 % Yield on Loans 3.71 % 3.68 % 3.83 % Yield on Securities 1.81 % 2.04 % 2.20 % Average Cost of Total Deposits(4) 0.08 % 0.11 % 0.15 % Efficiency Ratio (1) 60.2 % 62.2 % 57.3 % Effective Tax Rate 20.9 % 18.6 % 19.5 % Ratio of Nonperforming Assets to Loans, Leases and OREO 0.69 % 0.68 % 0.62 % Annualized Ratio of Net Loan and Lease Charge-offs to Average Loans 0.11 % 0.38 % 0.23 % Common Equity Tier 1 Capital Ratio(5) 10.8% 10.4% 10.2% (1) Adjusted for items such as severance, securities gains and losses and debt extinguishment costs. See Appendix for GAAP to non-GAAP reconciliation tables. (2) Net Income before Preferred Dividends or redemption costs used in the numerator (3) Net Income Applicable to Common used in the numerator (4) Includes noninterest-bearing deposits (5) Current period ratios and amounts represent estimates

 
24 Loan Growth - by Bank Brand and Loan Type Note: National Real Estate (NRE) is a division of Zions Bank with a focus on small business loans with low LTV ratios, which generally are in line with SBA 504 program parameters. “Other” loans includes municipal and other consumer loan categories. Totals shown above may not foot due to rounding. Period-End Year over Year Loan Growth (4Q20 vs. 4Q19) Period-End Linked Quarter Loan Growth (4Q20 vs. 3Q20) (in millions) Zions Bank Amegy CB&T NBAZ NSB Vectra CBW Other Total C&I (ex-Oil & Gas) 159 (171) 65 (29) 48 (29) (15) - 28 SBA PPP (334) (215) (276) (147) (108) (97) (61) - (1,238) Owner occupied 5 34 5 19 (2) (11) (1) - 49 Energy (Oil & Gas) (15) (111) 1 (1) - 1 (1) - (126) Municipal 89 38 12 (5) 48 53 (6) 16 245 CRE C&D (6) (13) (64) 86 (8) 18 34 - 47 CRE Term (22) (40) 133 (49) - (3) 11 - 30 1-4 Family (81) (112) (21) (31) (24) (10) - 39 (240) Home Equity (27) 7 9 (20) (11) (11) 1 - (52) Other (9) (9) 5 3 3 (3) (2) - (12) Total net loans (241) (592) (131) (174) (54) (92) (40) 55 (1,269) (in millions) Zions Bank Amegy CB&T NBAZ NSB Vectra CBW Other Total C&I (ex-Oil & Gas) (494) (558) 251 (157) (22) (110) (58) - (1,148) SBA PPP 1,379 1,114 1,330 574 500 379 296 - 5,572 Owner occupied (28) 83 101 48 42 4 34 - 284 Energy (Oil & Gas) 12 (197) (3) (3) - 11 (2) - (182) Municipal 179 68 137 - 65 67 (6) 48 558 CRE C&D 85 171 (105) 39 (5) (100) 49 - 134 CRE Term (10) (4) 388 (99) 38 109 (7) - 415 1-4 Family (208) (168) (63) (83) (49) (59) (1) 32 (599) Home Equity (101) 7 13 (39) (41) (8) (3) - (172) Other (32) (53) 11 7 (15) (7) (6) - (95) Total net loans 782 463 2,060 287 513 286 296 80 4,767

 
Oil & Gas (O&G) Credit Quality 25 Oil and Gas Key Credit Quality Ratios Excluding PPP Loans and as of December 31, 2020: ▪ Annualized NCOs equaled 2.2% of loans ▪ Classified loans equaled 12.8% of loans ▪ Allowance for credit losses of $104 million or 4.8% of balances ▪ Approximately 68% of 2020 oil production hedged in the low- $50s and 77% of gas production in the mid $2s (natural gas) Today vs. 2014-2016 downturn: ▪ Reduced concentration of energy services (67% decline in balances, 24 percentage point reduction of concentration in the energy portfolio) ▪ Underwriting on energy services has been much stronger ▪ Less leverage ▪ Replaced term loans with revolvers ▪ Fewer junior lien or subordinated debt behind Zions’ loans going into this cycle -5% 0% 5% 10% 15% 20% 25% 30% 35% 4 Q 1 4 4 Q 1 5 4 Q 1 6 4 Q 1 7 4 Q 1 8 4 Q 1 9 1 Q 2 0 2 Q 2 0 3 Q 2 0 4 Q 2 0 Net Charge-offs / Loans Classifieds / Loans Nonperforming Assets / Loans Note: Net Charge-offs/Loans ratio is annualized for all periods shown. Oil and gas loans account for $2.1 billion or 5% of total loans, excluding PPP Loans All Ratios Exclude PPP Loans

 
▪ Oilfield Services, which accounted for bulk of charge offs in the last cycle, accounts for 17% of the portfolio versus 45% going into the previous cycle (Dec 2014) ▪ Major differences today vs. then: Stronger individual loan underwriting, but weaker capital markets support ▪ Allowance for credit losses of $104 million or 4.5% of balances, up from $77 million at December 31, 2019 Oil & Gas Portfolio 26Oil & Gas portfolio tracked with internal coding. Based on Internal Data as of Q42020 Portfolio Trends Significant realignment since downturn Distribution of Outstanding Balance by Energy Type Sector GCOs Recoveries NCOs Services 11.9% 2.7% 9.2% Upstream 5.9% 1.4% 4.5% Other 1.2% 0.9% 0.4% Total 7.5% 1.9% 5.7% Historical Loss Rates (2015Q1 – 2018Q4) 0 2 4 6 8 10 12 14 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Balance WARG 1st Quartile 3rd Quartile 42% 40% 34% 35% 18% 17% 6% 8% 0% 20% 40% 60% 80% 100% 4Q2019 4Q2020 Upstream Midstream Services Downstream

 
27 GAAP to Non-GAAP Reconciliation (Amounts in millions) 4Q20 3Q20 2Q20 1Q20 4Q19 Efficiency Ratio Noninterest expense (GAAP) (1) (a) $ 424 $ 442 $ 430 $ 408 $ 472 Adjustments: Severance costs 1 1 - - 22 Other real estate expense 1 - - - - Debt extinguishment cost - - - - - Amortization of core deposit and other intangibles - - - - - Restructuring costs (1) 1 - 1 15 Pension termination-related expense - - 28 - - Total adjustments (b) 1 2 28 1 37 Adjusted noninterest expense (non-GAAP) (a) - (b) = (c) 423 440 402 407 435 Net Interest Income (GAAP) (d) 550 555 563 548 559 Fully taxable-equivalent adjustments (e) 7 7 6 7 7 Taxable-equivalent net interest income (non-GAAP) (d) + (e) = (f) 557 562 569 555 566 Noninterest income (GAAP) (1) (g) 166 157 117 134 152 Combined income (f) + (g) = (h) 723 719 686 689 718 Adjustments: Fair value and nonhedge derivative income (loss) 8 8 (12) (11) 6 Equity securities gains (losses), net 12 4 (4) (6) 2 Total adjustments (i) 20 12 (16) (17) 8 Adjusted taxable-equivalent revenue (non-GAAP) (h) - (i) = (j) 703 707 702 706 710 Pre-provision net revenue (PPNR), as reported (h) – (a) $ 299 $ 277 $ 256 $ 281 $ 246 Adjusted pre-provision net revenue (PPNR) (j) - (c) $ 280 $ 267 $ 300 $ 299 $ 275 Efficiency Ratio (1) (c) / (j) 60.2 % 62.2 % 57.3 % 57.7 % 61.3 %

 
28 GAAP to Non-GAAP Reconciliation $ In millions except per share amounts 4Q20 3Q20 2Q20 1Q20 4Q19 Pre-Provision Net Revenue (PPNR) (a) Total noninterest expense $424 $442 $430 $408 $472 LESS adjustments: Severance costs 1 1 - - 22 Other real estate expense 1 - - - - Restructuring costs (1) 1 - 1 15 Pension termination-related expense - - 28 - - (b) Total adjustments 1 2 28 1 37 (a-b)=(c) Adjusted noninterest expense 423 440 402 407 435 (d) Net interest income 550 555 563 548 559 (e) Fully taxable-equivalent adjustments 7 7 6 7 7 (d+e)=(f) Taxable-equivalent net interest income (TENII) 557 562 569 555 566 (g) Noninterest Income 166 157 117 134 152 (f+g)=(h) Combined Income $723 $719 $686 $689 $718 LESS adjustments: Fair value and nonhedge derivative income (loss) 8 8 (12) (11) 6 Securities gains (losses), net 12 4 (4) (6) 2 (i) Total adjustments 20 12 (16) (17) 8 (h-i)=(j) Adjusted revenue $703 $707 $702 $706 $710 (j-c) Adjusted pre-provision net revenue (PPNR) $280 $267 $300 $299 $275 Net Earnings Applicable to Common Shareholders (NEAC) (k) Net earnings applicable to common 275 167 57 6 174 (l) Diluted Shares 163,900 163,779 164,425 172,998 178,718 GAAP Diluted EPS 1.66 1.01 0.34 0.04 0.97 PLUS Adjustments: Adjustments to noninterest expense 1 2 28 1 37 Adjustments to revenue (20) (12) 16 17 (8) Tax effect for adjustments 5 3 (12) (4) (11) Preferred stock redemption - - - - - (m) Total adjustments (14) (7) 32 14 18 (k+m)=(n) Adjusted net earnings applicable to common (NEAC) 261 160 89 20 192 (n)/(l) Adjusted EPS 1.59 0.98 0.54 0.12 1.07 (o) Average assets 80,060 77,983 75,914 70,205 69,575 (p) Average tangible common equity 6,150 6,063 6,016 5,910 5,852 Profitability (n)/(o) Adjusted Return on Assets (annualized) 1.30% 0.82% 0.47% 0.11% 1.09% (n)/(p) Adjusted Return on Tangible Common Equity (annualized) 16.9% 10.6% 5.9% 1.4% 13.0% (c)/(j) Efficiency Ratio 60.2% 62.2% 57.3% 57.7% 61.3%

 

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