ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/ZION

ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/ Leases Disclosure

10-KFiled Feb 24, 20263 min read
LEASES
We have operating and finance leases for branches, data centers, and corporate offices, including our headquarters in Salt Lake City, Utah. At December 31, 2025, we had 407 branches, with 278 owned and 129 leased. The remaining maturities of our lease commitments range from the year 2026 to 2062, with some lease arrangements including options to extend or terminate the leases.
Leases with terms longer than twelve months are reported as a lease liability with a corresponding right-of-use (“ROU”) asset. ROU assets for operating leases and finance leases are included in “Other assets” and “Premises, equipment and software, net” on the consolidated balance sheet, respectively. The corresponding liabilities for those leases are included in “Other liabilities” and “Long-term debt,” respectively.
ROU assets and related lease liabilities represent the present value of the future minimum lease payments over the lease term as of the lease commencement date. Since most of our leases do not specify an implicit rate, we use our secured incremental borrowing rate, which is commensurate with the lease term, to calculate the present value of future payments. The ROU asset also includes lease prepayments, initial direct costs, amortization, and certain nonlease components such as maintenance, utilities, and tax payments. Our lease terms incorporate options to extend or terminate the lease when it is reasonably certain that such options will be exercised.
The following schedule presents ROU assets and lease liabilities with the associated weighted average remaining life and discount rate:
December 31,
(Dollar amounts in millions)20252024
Operating leases
ROU assets, net of amortization$207$188
Lease liabilities257240
Finance leases
ROU assets, net of amortization33
Lease liabilities44
Weighted average remaining lease term (years)
Operating leases9.49.9
Finance leases14.715.6
Weighted average discount rate
Operating leases4.0 %3.8 %
Finance leases3.2 %3.1 %
The following schedule presents additional information related to lease expense:
Year Ended December 31,
(In millions)202520242023
Lease expense:
Operating lease expense$40 $40 $43 
Other expenses associated with operating leases 1
65 62 60 
Total lease expense$105 $102 $103 
Related cash disbursements for operating leases$42 $43 $49 
1 Other expenses primarily include property taxes and building and property maintenance.
The following schedule presents the total contractual undiscounted lease payments for operating lease liabilities by expected due date for each of the next five years:
(In millions)Total undiscounted lease payments
2026$42 
202734 
202835 
202932 
203029 
Thereafter143 
Total lease payments315 
Less imputed interest58 
Total$257 
We enter into certain lease agreements where we are the lessor of real estate, including bank-owned and subleased properties, to generate cash flow. This activity includes leasing vacant suites within buildings that we partially occupy. Operating lease income totaled $15 million, $13 million, and $14 million in 2025, 2024, and 2023, respectively.
At December 31, 2025 and 2024, we originated equipment leases classified as sales-type or direct-financing leases totaling $367 million and $377 million, respectively. Income from these leases was $19 million, $18 million, and $16 million during 2025, 2024, and 2023, respectively.
Free Sentinel

Want the next ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/ leases disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/'s next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 25, 2025
2023Feb 23, 2024
2022Feb 23, 2023
2021Feb 25, 2022
2020Feb 25, 2021
2019Feb 26, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesSegmentsDebtCommitmentsStock CompensationNew Standards