GET DAILY SIGNALSZions Bancorporation (ZION) Delivers Solid Q3 Results With Impressive Credit Quality
Key Takeaways
- Zions Bancorporation reported third-quarter 2026 net earnings applicable to common shareholders of $262 million, or $1.78 per diluted share, up 20% from $1.48 a year earlier.
- Diluted earnings per share (EPS) beat the consensus estimate of $1.64, while revenue of $893 million came in roughly in line with expectations.
- Net interest income (NII), the bank's core lending profit, rose 2% year over year, while the net interest margin (NIM) edged down to 3.23%.
- Credit quality remained a standout, with annualized net charge-offs of just 2 basis points and net loan charge-offs of only $3 million, down from $56 million a year ago.
- Average customer deposits grew 8.8% on an annualized basis, well outpacing loan growth of 3.7%.
Why These Results Stand Out
Zions Bancorporation, a regional bank operating across 11 Western states, released its third-quarter numbers in an environment of evolving rate expectations. The report provides useful insight into how this moderately asset-sensitive lender is faring as shorter-term rates moved higher late in the period. I am watching closely to see whether deposit growth can keep pace with lending demand, if margins hold steady, and how the recently completed acquisition of Basis Investment Group's multifamily finance platform might help diversify income. The year-over-year earnings gain, supported mainly by much better credit performance, gives a useful read on commercial borrower health in Zions' key markets.
Breaking Down the Quarter
For the third quarter of 2026, Zions Bancorporation posted net earnings applicable to common shareholders of $262 million, or $1.78 per diluted share, compared with $221 million, or $1.48 per share, in the third quarter of 2025. The second quarter of 2026 had included a sizable equity securities gain that boosted reported EPS to $3.05; excluding that item, adjusted EPS came in at $1.74.
Reported EPS of $1.78 exceeded the Zacks consensus estimate of $1.64, an upside surprise of about 8.5%. Revenue of $893 million increased 2.4% year over year and landed essentially in line with the $892.91 million consensus. Taxable-equivalent NII reached $684 million, up 1% from the prior quarter and 2% year over year.
The net interest margin slipped 4 basis points sequentially to 3.23%, reflecting higher deposit costs and expansion in lower-yielding assets. Customer-related noninterest income rose to $192 million, while adjusted noninterest expense of $549 million increased just 1% from the previous quarter. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Market Reaction
Zions Bancorporation shares moved modestly higher right after the release, showing a generally positive yet measured investor reaction. The clear EPS beat, driven by exceptional credit quality, was viewed favorably, though the modest decline in net interest margin and revenue coming only in line with expectations tempered some enthusiasm. Sentiment also drew support from management’s outlook, which points to meaningfully stronger NII in a higher-rate setting. Shares had gained roughly 8% year to date ahead of the print, trailing the broader market and leaving room for the results to be digested.
Looking Ahead
Management outlined a detailed forecast tied to the third quarter of 2027. It expects NII to grow approximately 8% to 12%, adjusted customer-related fee income to rise 6% to 9%, and adjusted noninterest expense to increase 4% to 6% relative to the just-reported period. This outlook assumes three Federal Reserve rate increases through June 2027 and a rise in the total cost of deposits from 1.59% to roughly 2%.
A key variable remains the net interest margin. Deposit growth is currently outpacing loan growth, pushing excess liquidity into lower-yielding money market investments that weigh on the margin. How quickly those balances shift into loans will influence NII momentum ahead. Credit quality will stay in focus as well. The allowance for credit losses held at about 1.10% of loans with 207% coverage of nonaccrual loans, and a stable Common Equity Tier 1 (CET1) capital ratio of 11.8% offers a cushion. Finally, integration of the Basis multifamily platform merits attention, as management anticipates roughly $17 million to $20 million of revenue from it in 2027, scaling toward a medium-term target of $30 million to $40 million annually.
Tools I Use for Research
When analyzing regional banks like this, I find Tickeron’s AI Screener helpful for quickly comparing fundamentals, technical patterns, and performance metrics across the sector. It lets me filter thousands of stocks and ETFs with customizable criteria, which speeds up the process of spotting comparable names or broader trends without manual effort. From what I see, combining these AI-driven scans with traditional earnings analysis gives a more complete picture for portfolio decisions.
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Financial analyst and market blogger with expertise in equity research, fundamental analysis, and macroeconomic trends. I regularly publish coverage on individual stocks, ETFs, and sector developments — combining rigorous financial analysis with clear, engaging writing for a broad investment audience.
ZION in upward trend: price rose above 50-day moving average on November 09, 2026
ZION moved above its 50-day moving average on November 09, 2026 date and that indicates a change from a downward trend to an upward trend. In 34 of 46 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 74%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 47 of 64 cases where ZION's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 73%.
The Momentum Indicator moved above the 0 level on November 09, 2026. You may want to consider a long position or call options on ZION as a result. In 60 of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 73%.
The Moving Average Convergence Divergence (MACD) for ZION just turned positive on October 08, 2026. Looking at past instances where ZION's MACD turned positive, the stock continued to rise in 30 of 48 cases over the following month. The odds of a continued upward trend are 62%.
The 10-day moving average for ZION crossed bullishly above the 50-day moving average on October 30, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 59%.
Following a +2.41% 3-day Advance, the price is estimated to grow further. Considering data from situations where ZION advanced for three days, in 214 of 331 cases, the price rose further within the following month. The odds of a continued upward trend are 65%.
The Aroon Indicator entered an Uptrend today. In 147 of 239 cases where ZION Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 62%.
Bearish Trend Analysis
The 10-day RSI Indicator for ZION moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 37 similar instances where the indicator moved out of overbought territory. In 25 of the 37 cases, the stock moved lower in the following days. This puts the odds of a move lower at 68%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ZION declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 69%.
ZION broke above its upper Bollinger Band on October 20, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 9 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 45 (best 1 - 100 worst), indicating steady price growth. ZION’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 61 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 73 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.241) is normal, around the industry mean (1.262). P/E Ratio (8.250) is within average values for comparable stocks, (13.480). Projected Growth (PEG Ratio) (3.417) is also within normal values, averaging (1.194). Dividend Yield (0.030) settles around the average of (0.035) among similar stocks. P/S Ratio (2.573) is also within normal values, averaging (3.740).
The Tickeron Profit vs. Risk Rating rating for this company is 77 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ZION’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 56, placing this stock worse than average.
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a regional bank
Industry RegionalBanks
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