Zions Bancorp to take $50M loan writedown

In a regulatory filing, the company stated: “Zions Bancorp (ZION)oration recently became aware of legal actions initiated by several banks and other lenders against parties that appeared to be affiliated with two borrowers under two related commercial and industrial loans extended by the Bank’s California Bank & Trust division. The Bank’s Loans are guaranteed by several individuals. Upon discovery of this information, the Bank commenced an internal review of the Borrowers, the Obligors, the Loans, and the supporting collateral. During this review, the Bank identified what it believes to be apparent misrepresentations and contractual defaults by the Borrowers and Obligors and other irregularities with respect to the Loans and collateral. The Bank’s subsequent demands and notices of default and acceleration to the Borrowers and Obligors have gone unanswered. Based on currently available information, on October 15, 2025, the Bank determined to take a provision for the full approximately $60 million outstanding under the Loans and charge off $50 million of said amount. The provision and charge-off will be reflected in the Bank’s earnings and financial statements for the third quarter of 2025. The Bank intends to pursue its legal remedies and has commenced a lawsuit in California against the Obligors for full recovery. Although the Bank believes this is an isolated situation, it plans to engage counsel to coordinate an independent review.”