Zions Bancorporation, National Association (ZION): BCG Matrix [Dec-2025 Updated]

You're looking at the late 2025 strategic map for Zions Bancorporation, National Association (ZION), and honestly, it shows a bank balancing clear wins against necessary clean-up. We've got Stars-like Commercial and Industrial lending in the West-powering 17% Tangible Book Value per Share growth, all resting on Cash Cows that delivered $672 million in core Net Interest Income with a 3.28% Net Interest Margin. Still, we must address the Dogs, like the legacy securities portfolio yielding just 2.73%, while carefully navigating Question Marks such as the high-risk Commercial Real Estate exposure, which recently saw a $50 million charge-off. Keep reading to see the precise breakdown of where ZION needs to invest, hold, or divest right now.

Background of Zions Bancorporation, National Association (ZION)

You're looking at a regional banking powerhouse with deep roots, and understanding its structure is key before we map its portfolio. Zions Bancorporation, National Association (ZION) is an American national bank headquartered in Salt Lake City, Utah, tracing its origins all the way back to 1873. As of late 2025, the institution manages a substantial balance sheet, with total assets reported around $88.53 billion as of the third quarter of 2025, up slightly from approximately $89 billion at the end of 2024. This bank has definitely built a focused footprint across 11 western states, including Arizona, California, Colorado, Texas, and Utah.

The core of Zions Bancorporation's strategy is its decentralized, community-focused model. Instead of one monolithic brand, it operates through distinct local management teams under several brands, such as Zions Bank, Amegy Bank of Texas, California Bank & Trust, and Vectra Bank Colorado. This structure helps them stay close to the ground, making them a consistent national leader in areas like Small Business Administration lending and public finance advisory services. They offer the full suite of commercial and retail banking products, plus wealth management.

Looking at the near-term performance leading into late 2025, the bank has shown resilience and margin strength. For instance, in the second quarter of 2025, net earnings applicable to common shareholders hit $243 million, translating to diluted earnings per share of $1.63. The net interest margin (NIM) has been a bright spot, expanding to 3.17% in Q2 2025 and even reaching 3.28% by Q3 2025, showing effective balance sheet management. Revenue figures for the trailing period ending around October 2025 touched $3.13B, testament to sustained growth in a changing landscape, though you'll see a negative EBIT margin of -2.8% noted in some analyses, which raises questions about core operational efficiency outside of interest income.

Zions Bancorporation, National Association (ZION) - BCG Matrix: Stars

You're looking at the core engine of Zions Bancorporation, National Association (ZION)'s current success, which we categorize as Stars-businesses with high market share in markets that are still expanding. For Zions Bancorporation, National Association (ZION), this primarily centers on its dominant position in Commercial and Industrial (C&I) lending across its footprint in the high-growth Western states. This segment is actively driving the overall loan growth trajectory for the bank, which is exactly what you want to see in a high-growth quadrant business. These units are leaders, but honestly, they still require significant capital deployment to maintain that leading edge and capture further market share, which is why they consume cash as fast as they generate it, keeping the net cash flow near zero for now.

The underlying strength supporting this Star classification is clearly visible in the core earnings momentum, which you can see reflected in the latest reported figures. This momentum suggests Zions Bancorporation, National Association (ZION) is successfully reinvesting in these high-potential areas. Here's a quick look at the numbers that paint this picture of high performance and high investment:

The core earnings power is undeniable. Pre-Provision Net Revenue (PPNR) growth hit 14% year-over-year in Q3 2025. That's strong core earnings momentum, showing the underlying business operations are highly effective before considering credit provisions. Furthermore, the value creation for shareholders in this segment is evident in the balance sheet strength; Tangible Book Value per Share (TBVPS) grew by 17% over the last year. This rapid accumulation of tangible equity is a key indicator that these high-growth areas are building significant intrinsic value, positioning them perfectly to transition into Cash Cows when the market growth inevitably slows.

A concrete example of a strategic investment paying off in a high-growth area is the bank's renewed focus on Small Business Administration (SBA) lending. This is a classic move to secure market share early in a growing segment. We saw a 91% increase in SBA 7(a) deals in Q2 2025. This aggressive capture of small business relationships is exactly the kind of investment a Star requires to solidify its market leadership. You want to see this kind of activity because it locks in future, stable revenue streams.

• C&I lending is the primary loan growth driver.
• PPNR growth of 14% shows strong operational leverage.
• TBVPS growth of 17% signals high value realization.
• The 91% jump in SBA 7(a) deals secures future market share.

Zions Bancorporation, National Association (ZION) - BCG Matrix: Cash Cows

You're looking at the core engine of Zions Bancorporation, National Association (ZION), the business units that dominate their mature markets and reliably fund the rest of the enterprise. These are the classic Cash Cows, units where market share is high, but growth prospects are naturally limited, meaning we don't need to pour heavy promotional dollars into them. Instead, we focus on efficiency and milking the gains.

The primary, stable revenue engine for Zions Bancorporation, National Association is its Core Net Interest Income (NII). For the third quarter of 2025, NII hit $672 million, representing an 8% increase year-over-year. This consistent income stream is the bedrock. Furthermore, the Net Interest Margin (NIM) shows this core business is getting more efficient at generating revenue from its assets; it expanded for the seventh consecutive quarter, landing at 3.28% in Q3 2025. That's a clear sign of strong management in a stable market.

This stability is underpinned by a sticky funding base. Deposits, crucially excluding brokered deposits, are growing at a healthy 7% annualized rate. This low-cost funding helps support the large, diversified loan portfolio, which totaled $60.3 billion in loans and leases as of the end of Q3 2025, providing that consistent interest income stream. We invest just enough to maintain this productivity, maybe a bit more into infrastructure to shave basis points off costs, but not for aggressive expansion.

Here's a quick look at the Q3 2025 performance metrics that define this cash-generating strength:

• Net Interest Margin (NIM) reached 3.28%.
• Net Interest Income (NII) was $672 million.
• Deposits (ex-brokered) grew at a 7% annualized rate.
• Total Loans and Leases stood at $60.3 billion.
• The efficiency ratio improved to 59.6%.

To be fair, even Cash Cows face some headwinds. The quarter included a significant $50 million charge-off related to two specific borrowers, but management views this as an isolated event. Excluding that, net charge-offs were benign at $6 million, or 4 basis points of average loans annualized. The focus remains on milking the current structure, which generated Net Earnings of $221 million for the quarter.

The following table summarizes the core financial outputs that make these segments Cash Cows:

The goal here isn't aggressive growth spending; it's maintaining the current productivity level to generate the cash needed for other parts of the portfolio, like funding Question Marks or servicing corporate debt. Finance: draft 13-week cash view by Friday.

Zions Bancorporation, National Association (ZION) - BCG Matrix: Dogs

You're looking at the parts of Zions Bancorporation, National Association (ZION) that aren't driving significant growth or cash flow, the classic Dogs in the matrix. These are the areas where capital is tied up without much return, and the strategy here is usually to minimize exposure or divest.

Brokered deposits, which you know are high-cost and less stable than core customer deposits, are being actively reduced. This is a clear move to shed less desirable funding. In the third quarter of 2025, Zions Bancorporation saw an 11.5% reduction in average broker deposits compared to the prior quarter. To put a number on that reduction, brokered deposits decreased by $109 million linked quarter. This aligns with the goal of minimizing reliance on these less sticky funds.

The legacy, low-yield securities portfolio is another area fitting this quadrant. While the overall net interest margin improved to 3.28% in Q3 2025, the yield on the securities book itself reflects the drag of older, lower-rate assets. Specifically, the net yield on average securities declined 13 basis points to just 2.73% in Q3 2025. This low return on a significant asset class makes it a candidate for replacement or reduction, even as the bank works to improve the overall asset mix.

The pressure on asset quality is further suggested by the overall loan portfolio contraction. For the linked quarter in Q3 2025, the loan portfolio contracted at a 3% annualized rate. This shrinking suggests that certain segments aren't keeping pace or are being actively managed down, which is typical for Dog categories. As of Q3 2025, total loans and leases stood at $60.3 billion.

Finally, we look at the structure of the regional affiliates. Zions Bancorporation, National Association manages its operations through seven divisions, with the three largest accounting for approximately 60% of total assets. This structure implies that the remaining operations or specific, smaller product lines within those affiliates that don't fit the core growth narrative-perhaps niche lending or low-volume fee services-represent the certain non-core, low-volume product lines that are candidates for minimization or divestiture.

Here are the key statistical markers for these underperforming areas as of Q3 2025:

• Net Yield on Average Securities: 2.73%
• Average Broker Deposit Reduction (Q3 2025 vs. Prior Quarter): 11.5%
• Linked-Quarter Loan Portfolio Change (Q3 2025): -3% annualized
• Total Loans and Leases (Q3 2025): $60.3 billion
• Broker Deposit Dollar Reduction (Linked Quarter): $109 million

The financial snapshot below illustrates the low-yield nature of one of the key asset components:

The focus for management should be on executing the reduction of the high-cost funding and managing down the low-yielding securities to free up capital. Honestly, expensive turn-around plans for these types of assets rarely pay off in banking.

Zions Bancorporation, National Association (ZION) - BCG Matrix: Question Marks

You're looking at business units that are consuming cash due to heavy investment in high-growth potential areas, but their market penetration-or return on that investment-is not yet proven. These are the areas where Zions Bancorporation, National Association is betting on future dominance.

Digital banking enhancements and AI/ML integration represent a significant capital deployment area. While the strategic importance is clear for future market share, specific metrics detailing the current market share or immediate return on these technology investments are not yet crystallized into a 'Star' status. The focus remains on adoption and integration, which inherently requires heavy, ongoing investment with an uncertain payoff timeline.

New consumer deposit products show early, rapid adoption, fitting the high-growth, low-base profile of a Question Mark. The Nevada consumer gold account is a prime example of a targeted, new offering showing strong initial traction.

• Nevada consumer gold account sales increase versus predecessor: 78%.
• Average balances for the new consumer gold accounts: approximately $30,000 (pre-significant paid marketing).

The Commercial Real Estate (CRE) portfolio is a segment characterized by high inherent risk that demands constant, intensive management-a form of investment to de-risk the asset base. While Zions Bancorporation, National Association maintains a strong overall credit culture, the concentration and maturity schedule in CRE place it squarely in the high-risk, high-reward/high-management-cost quadrant.

Here's the quick math on the CRE exposure that requires this heavy management:

The high-risk nature of certain lending segments was underscored by a specific credit event in the third quarter of 2025. This single event highlights the potential for rapid, material losses in segments that haven't been fully vetted or where underwriting assumptions failed.

• One-time charge-off announced on October 15, 2025, impacting Q3 2025 financials: $50 million.
• Total net charge-offs reported for Q3 2025: $56 million.
• Legal action initiated to recover: more than $60 million.
• Net charge-offs excluding the event: only $6 million, or four basis points annualized.

The bank's Q2 2025 Net Interest Margin was 3.17%, and Q2 2025 diluted Earnings Per Share was $1.63, showing underlying profitability, but these Question Marks require investment to ensure they don't become Dogs.