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 expected to rise as it breaks its lower Bollinger Band on September 22, 2026
ZION may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 34 of 44 cases where ZION's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 77%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where ZION's RSI Indicator exited the oversold zone, 16 of 21 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 76%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 47 of 62 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 76%.
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 36 of 49 cases over the following month. The odds of a continued upward trend are 73%.
Following a +2.57% 3-day Advance, the price is estimated to grow further. Considering data from situations where ZION advanced for three days, in 215 of 333 cases, the price rose further within the following month. The odds of a continued upward trend are 65%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 19, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ZION as a result. In 58 of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 69%.
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%.
The Aroon Indicator for ZION entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying 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 50 (best 1 - 100 worst), indicating fairly steady price growth. ZION’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 60 (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 75 (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 (1.210) is normal, around the industry mean (1.229). P/E Ratio (8.043) is within average values for comparable stocks, (13.102). Projected Growth (PEG Ratio) (3.417) is also within normal values, averaging (1.190). Dividend Yield (0.030) settles around the average of (0.036) among similar stocks. P/S Ratio (2.573) is also within normal values, averaging (3.738).
The Tickeron Profit vs. Risk Rating rating for this company is 75 (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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