DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2025

Summary of Derivative Instruments [Abstract]

The following schedule presents derivative notional amounts and recorded gross fair values at June 30, 2025 and December 31, 2024:


	June 30, 2025						December 31, 2024
	Notional amount		Fair value				Notional amount		Fair value
(In millions)			Other assets		Other liabilities				Other assets		Other liabilities
Derivatives designated as hedging instruments:
Cash flow hedges:

Hedges of floating-rate assets	$	750	$	7	$	—	$	550	$	—	$	2
Hedges of floating-rate liabilities	—		—		—		500		—		—
Fair value hedges:
Hedges of fixed-rate assets 1	6,166		80		—		4,668		93		—
Hedges of fixed-rate liabilities	500		—		—		500		—		—
Total derivatives designated as hedging instruments	7,416		87		—		6,218		93		2
Derivatives not designated as hedging instruments:
Customer interest rate derivatives 2	18,221		284		271		16,833		348		346
Other interest rate derivatives	1,134		1		—		1,105		1		—
Foreign exchange derivatives	466		4		2		373		4		2
Purchased credit derivatives	79		—		1		24		—		—
Total derivatives not designated as hedging instruments	19,900		289		274		18,335		353		348
Total derivatives	$	27,316	$	376	$	274	$	24,553	$	446	$	350

1 Includes forward-starting swaps that are not yet effective.

2 Customer interest rate derivatives include both customer-facing derivatives and offsetting dealer-facing derivatives.

Schedule of Derivative Gains (Losses) Deferred in OCI or Recognized in Earnings

The following schedules present the amount of gains (losses) from derivative instruments designated as cash flow and fair value hedges that were deferred in AOCI or recognized in earnings for the three and six months ended June 30, 2025 and 2024:


	Three Months Ended June 30, 2025
(In millions)	Effective portion of derivative gain (loss) deferred in AOCI		Amount of gain (loss) reclassified from AOCI into income		Interest on fair value hedges
Cash flow hedges: 1

Hedges of floating-rate assets	$	2	$	(18)	$	—
Hedges of floating-rate liabilities	—		—		—
Fair value hedges: 2
Hedges of fixed-rate assets	—		—		14
Hedges of fixed-rate liabilities	—		—		(2)


Total derivatives designated as hedging instruments	$	2	$	(18)	$	12


	Six Months Ended June 30, 2025
(In millions)	Effective portion of derivative gain (loss) deferred in AOCI		Amount of gain (loss) reclassified from AOCI into income		Interest on fair value hedges
Cash flow hedges: 1

Hedges of floating-rate assets	$	8	$	(38)	$	—

Hedges of floating-rate liabilities	—		1		—
Fair value hedges: 2
Hedges of fixed-rate assets	—		—		27

Hedges of fixed-rate liabilities	—		—		(5)

Total derivatives designated as hedging instruments	$	8	$	(37)	$	22


	Three Months Ended June 30, 2024
(In millions)	Effective portion of derivative gain (loss) deferred in AOCI		Amount of gain (loss) reclassified from AOCI into income		Interest on fair value hedges
Cash flow hedges: 1

Hedges of floating-rate assets	$	(1)	$	(33)	$	—
Hedges of floating-rate liabilities	1		2		—
Fair value hedges: 2
Hedges of fixed-rate assets	—		—		24
Hedges of fixed-rate liabilities	—		—		(2)
Total derivatives designated as hedging instruments	$	—	$	(31)	$	22


	Six Months Ended June 30, 2024
(In millions)	Effective portion of derivative gain (loss) deferred in AOCI		Amount of gain (loss) reclassified from AOCI into income		Interest on fair value hedges
Cash flow hedges: 1

Hedges of floating-rate assets	$	(6)	$	(69)	$	—

Hedges of floating-rate liabilities	5		4		—
Fair value hedges: 2
Hedges of fixed-rate assets	—		—		46


Hedges of fixed-rate liabilities	—		—		(3)

Total derivatives designated as hedging instruments	$	(1)	$	(65)	$	43

1 For the 12 months following June 30, 2025, we estimate that $45 million of net losses from active and terminated cash flow hedges will be reclassified from AOCI into interest income, compared with an estimate of $88 million at June 30, 2024. At June 30, 2025, there were $60 million of losses deferred in AOCI related to terminated cash flow hedges that are expected to be fully reclassified into earnings by October 2027.

2 We had total cumulative unamortized basis adjustments from terminated fair value hedges of debt of $36 million and $43 million at June 30, 2025 and 2024, respectively. We had $3 million of cumulative unamortized basis adjustments from terminated fair value hedges of assets at both June 30, 2025 and 2024. Interest on fair value hedges presented above includes the amortization of the remaining unamortized basis adjustments.

Schedule of Gains (Losses) Recognized From Derivatives Not Designated as Accounting Hedges

The following schedule presents the amount of gains (losses) recognized from derivatives not designated as

accounting hedges:


	Other Noninterest Income/(Expense)
(In millions)	Three Months Ended June 30, 2025		Six Months Ended June 30, 2025		Three Months Ended June 30, 2024		Six Months Ended June 30, 2024
Derivatives not designated as hedging instruments:
Customer-facing interest rate derivatives	$	11	$	18	$	6	$	12
Other interest rate derivatives	—		(1)		—		1
Foreign exchange derivatives	8		14		7		15
Purchased credit derivatives	(1)		(1)		—		—
Total derivatives not designated as hedging instruments	$	18	$	30	$	13	$	28

Schedule of Fair Value Hedges

The following schedule presents derivatives used in fair value hedge accounting relationships, along with pre-tax gains (losses) recorded on these derivatives and the related hedged items for the periods presented:


	Gains (losses) recorded in income
	Three Months Ended June 30, 2025						Three Months Ended June 30, 2024
(In millions)	Derivatives		Hedged items		Total income statement impact		Derivatives		Hedged items		Total income statement impact

Hedges of fixed-rate assets 1, 2	$	(35)	$	35	$	—	$	20	$	(20)	$	—
Hedges of fixed-rate debt 1, 2	4		(4)		—		—		—		—


	Gains (losses) recorded in income
	Six Months Ended June 30, 2025						Six Months Ended June 30, 2024
(In millions)	Derivatives		Hedged items		Total income statement impact		Derivatives		Hedged items		Total income statement impact

Hedges of fixed-rate assets 1, 2	$	(115)	$	115	$	—	$	118	$	(118)	$	—
Hedges of fixed-rate debt 1, 2	16		(16)		—		—		—		—

1 Includes hedges of benchmark interest rate risk for fixed-rate long-term debt, fixed-rate AFS securities, and fixed-rate commercial loans. Gains and losses were recorded in interest income or expense, consistent with the hedged items.

2 The income/expense for derivatives does not reflect interest income/expense from periodic accruals and payments to be consistent with the presentation of the gains (losses) on the hedged items.

Schedule of Basis Adjustments for Hedged Items

The following schedule presents information regarding basis adjustments for hedged items in fair value hedging relationships:


	Par value of hedged items				Carrying amount of the hedged items 1				Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged items
(In millions)	June 30, 2025		December 31, 2024		June 30, 2025		December 31, 2024		June 30, 2025		December 31, 2024

Hedges of fixed-rate assets 1, 2	$	11,473	$	11,388	$	11,299	$	11,099	$	(174)	$	(289)
Hedges of fixed-rate debt 1	(500)		(500)		(509)		(493)		(9)		7

1 Carrying amounts exclude (1) issuance and purchase discounts or premiums, (2) unamortized issuance and acquisition costs, and (3) amounts related to terminated fair value hedges.

2 At June 30, 2025, the amortized cost basis of assets designated using the portfolio layer method was $9.8 billion; the cumulative basis adjustment associated with these hedging relationships was $29 million; and the notional amounts of the designated hedging instruments were $4.5 billion.

ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/ 10-Q