Zions Bancorporation NA (ZION) Earnings Date & Reports

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%.

Earnings Context and Why It Matters

Zions Bancorporation, a regional bank serving 11 Western states, delivered its third-quarter results against a backdrop of shifting interest-rate expectations. The report matters because it reveals how a moderately asset-sensitive lender is positioned as short- and medium-term rates began rising late in the quarter. Investors are watching whether deposit growth can fund loan demand, whether margins can stabilize, and whether the bank's newly completed acquisition of Basis Investment Group's multifamily finance platform can diversify revenue. The strong year-over-year earnings improvement, driven largely by sharply improved credit quality, offers a signal on the health of commercial borrowers in Zions' Western markets.

Reported Results

For the third quarter of 2026, Zions Bancorporation reported 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 large equity securities gain that lifted reported EPS to $3.05; excluding that, adjusted EPS was $1.74.

Reported EPS of $1.78 topped the Zacks consensus estimate of $1.64, an upside surprise of roughly 8.5%. Revenue of $893 million rose 2.4% year over year and was 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 declined 4 basis points sequentially to 3.23%, pressured by higher deposit costs and growth in lower-yielding assets. On the other side of the ledger, customer-related noninterest income rose to $192 million, while adjusted noninterest expense of $549 million increased just 1% from the prior quarter.

AI Screener

Tickeron's AI Screener is an AI-powered stock and exchange-traded fund (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 is designed to help identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. For investors following regional banking names like Zions Bancorporation, tools like this can streamline the search for comparable opportunities across the financial sector.

Market Reaction and Investor Sentiment

Zions shares traded modestly higher in the immediate aftermath of the report, reflecting a generally constructive but measured investor response. The clear EPS beat on the back of exceptional credit quality was viewed favorably, while the slight dip in the net interest margin and revenue landing only in line tempered enthusiasm. Sentiment was also supported by management's outlook, which points to meaningfully stronger NII in a higher-rate environment. Shares had gained roughly 8% year to date ahead of the print, lagging the broader market, leaving some room for the positive results to be absorbed.

Forward Outlook and Key Factors to Monitor

Management provided a detailed outlook tied to its 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 forecast 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 central variable to watch is the net interest margin. Deposit growth is currently outpacing loan growth, forcing excess liquidity into lower-yielding money market investments that dilute the margin. How quickly those balances are redeployed into loans will shape NII momentum in the coming quarters.

Credit quality will also remain a key focus. The bank's 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% provides a buffer. Finally, the integration of the Basis multifamily platform bears monitoring, as management expects 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.

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.

Disclaimers and Limitations