Zions Bancorporation Releases New Fixed-to-Floating Notes

Author: Henry Turner Updated: 08-11-2025 05:09 PM

Overview of Zions Bancorporation's Recent Offering

Zions Bancorporation, N.A. (NASDAQ: ZION), recognized as a leading financial services provider, has recently made headlines by pricing $500,000,000 in fixed-to-floating rate senior notes. This strategic move comes as part of their commitment to enhancing financial management and reducing short-term borrowings.

Details of the Senior Notes Offering

Pricing and Structure

The recently priced senior notes are structured to transition from a fixed interest rate to a floating rate, thereby adapting to changing market conditions. The fixed rate period will commence at 4.704%, effective from the settlement date, and will last until August 2027. Subsequently, the interest will be pegged to Compounded SOFR with an additional spread.

Use of Proceeds

Zions will utilize the net cash generated from this offering primarily to diminish current short-term borrowing levels. This approach illustrates Zions' commitment to financial stability and will enhance their overall financial positioning.

Financial Performance and Position

Current Financial Landscape

Zions Bancorporation stands out in the financial sector with approximately $89 billion in assets as of late 2024. The bank achieved an annual net revenue of $3.1 billion in the last fiscal year, demonstrating robust performance and operational excellence.

Operational Footprint

Operating with regional expertise, Zions offers services across 11 western states. The bank has successfully established itself as a trusted entity in small- and middle-market banking, public finance advisory services, and Small Business Administration lending, garnering various awards for its exemplary service.

Competitive Position and Recognition

As a testament to its strong market presence, Zions Bancorporation is included in both the S&P MidCap 400 and NASDAQ Financial 100 indices. Such recognitions reflect the institution's operational successes and its commitment to delivering superior banking services to its customers.

Future Roadmap

Growth and Stability

Zions Bancorporation aims for continued growth and operational efficiency through its financial strategies, including effective hedging against interest rate volatility. The notes' issuance is just one of the ways Zions plans to navigate challenging economic climates while maintaining investor confidence.

Investment Potential

The recent offering underscores Zions' stability and growth potential, making it an attractive prospect for investors aiming for sustainable financial institutions. With a solid revenue stream and strategic financial management, Zions Bancorporation is poised for ongoing success in the dynamic banking landscape.

Frequently Asked Questions

1. What are the key features of the newly issued senior notes?

The senior notes feature a fixed interest rate of 4.704% initially, transitioning to a floating rate based on Compounded SOFR plus a spread.

2. How will Zions use the proceeds from the offering?

Proceeds will primarily be utilized to reduce short-term borrowings, enhancing the bank's financial stability.

3. What is Zions Bancorporation's recent financial performance?

Zions recorded approximately $89 billion in assets and $3.1 billion in annual net revenue in 2024, showcasing its strong performance.

4. In which regions does Zions operate?

Zions operates in 11 western states, offering local expertise through distinct banking brands.

5. What indices is Zions Bancorporation included in?

Zions is part of the S&P MidCap 400 and NASDAQ Financial 100 indices, highlighting its strong market presence.

About The Author

Hi there, As a writer and financial specialist, Henry Turner is passionate about guiding people through the complex world of finance. Having worked in finance for many years, I am an expert at simplifying difficult financial ideas into understandable, useful insights for my blog and articles. My goal is to arm you with the confidence and information you need to make wise financial choices.

Writing for a number of financial blogs has allowed me to interact with readers from novice investors looking for fresh ideas to seasoned investors starting their financial journeys. My mission is to enable everyone to understand and access finance, so enabling you to confidently and clearly reach your financial goals. I appreciate you traveling with me toward success and financial literacy.

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