Zions Bancorporation NA (ZION) Earnings Date & Reports
Zions Bancorp is a US regional bank with around $90 billion in total assets as of Dec... Show more
ZION is expected to report earnings to $1.55 per share on July 20
Zions Bancorporation (ZION) First Quarter 2026 Earnings Recap: EPS Surges 38% Year-Over-Year
Key Takeaways
- Net earnings reached $232 million, a 37% increase from $169 million in Q1 2025.
- Diluted earnings per share (EPS) hit $1.56, surpassing consensus estimates of $1.43 and up 38% year-over-year (YoY).
- Net interest income (NII) rose 6% YoY to $662 million, though it declined 3% quarter-over-quarter (QoQ).
- Net interest margin (NIM) improved 17 basis points (bps) YoY to 3.27%, reflecting favorable deposit repricing.
- Provision for credit losses was a benefit of $7 million, supporting earnings amid low net charge-offs of 0.03% annualized.
- Return on average tangible common equity (ROTCE) strengthened to 15.5%, up 210 bps YoY.
Earnings Context and Why It Matters
Zions Bancorporation, a regional bank focused on the Western U.S., released its First Quarter 2026 results on April 20, 2026, amid ongoing interest rate dynamics and commercial real estate (CRE) scrutiny. This report is crucial as it highlights the bank's resilience in net interest margins and credit quality, key for regional lenders facing deposit competition and economic uncertainty. Prior quarters showed steady loan growth and low losses, but investors watch for NIM stability and CRE exposure, which comprises 22% of loans. Strong results could signal sector health, influencing ZION stock and peer valuations in a high-rate environment.
Zions Bancorporation reported net earnings of $232 million for First Quarter 2026, up 37% YoY from $169 million but down 11% QoQ from $262 million. Diluted EPS was $1.56, exceeding the $1.43 consensus estimate by $0.13 and rising 38% YoY.
NII totaled $662 million, a 6% YoY increase from $624 million but 3% below Q4 2025's $683 million; it fell short of estimates around $676 million. NIM expanded 17 bps YoY to 3.27% but contracted 4 bps QoQ, aided by lower deposit costs (down 8 bps to 1.48%).
A $7 million benefit from provision for credit losses marked a reversal from prior periods, driven by low net charge-offs (0.03% annualized, down 8 bps YoY) and declining nonperforming assets (NPAs) at 0.48% of loans. Average loans grew 2.4% annualized QoQ to $61.1 billion, with customer deposits up 1.8% period-end. Common Equity Tier 1 (CET1) capital ratio rose to 11.5%. No forward guidance was quantified, but management noted moderate growth expectations.
AI Screener
Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener identifies trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Explore it today to enhance your analysis.
Market Reaction and Investor Sentiment
Following the April 20 release, ZION shares dipped despite the EPS beat, reflecting disappointment over the NII miss and total revenue slightly below expectations (around $859 million vs. $861 million est.). Investors interpreted the QoQ NIM compression and seasonal factors as near-term headwinds, though credit strength bolstered confidence. Trading volume surged, with sentiment mixed—positive on earnings growth and low losses, cautious on deposit trends.
Forward Outlook and Key Factors to Monitor
Management anticipates moderately increasing period-end loan balances, led by commercial and industrial (C&I) and owner-occupied real estate loans, with consumer loans potentially contracting slightly. Deposit growth in core markets like Texas, Utah, and Colorado supports this trajectory.
NII is expected to rise moderately, benefiting from earning asset remix, loan expansion, and continued deposit cost declines. Adjusted customer-related noninterest income should see broad-based growth, aided by capital markets activity. Noninterest expenses face mild pressure from deposit-generating businesses but positive operating leverage from technology and marketing investments.
Key watches include CRE portfolio health (granular, low LTVs <60%, low delinquencies), criticized/classified loan trends, and net charge-off levels. Broader factors like Federal Reserve rate path, economic data, and regional demand will shape NIM and growth. CET1 remains solid above regulatory thresholds.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Advertisement
General Information
a regional bank
Industry RegionalBanks