Zions Bancorporation Stock Earnings Reports

Zions reported continued core momentum in Q3 2025: net interest margin (NIM) expanded 11 bps sequentially to 3.28%, net interest income rose 8% year-over-year, and adjusted pre-provision net revenue improved vs. prior quarter. Customer-related fees (excluding net CVA) increased, led by capital markets and growing treasury/mortgage fee contributions. Adjusted noninterest expense was essentially flat sequentially, producing improved efficiency (59.6%) and positive operating leverage. Credit: the bank took a $49 million provision and recorded $56 million of net charge-offs (37 bps annualized), largely driven by two related C&I loans for which ~$50 million was charged off and a full reserve established on the remaining ~$10 million; management characterizes this as an isolated event and is conducting an external review. Excluding that matter, charge-offs were minimal and classified balances improved. Balance sheet: average loans and deposits grew modestly (loans +2.1% annualized q/q; deposits +3.1% annualized q/q), deposit costs ticked down slightly and the bank completed a migration of certain interest-bearing consumer deposits into noninterest-bearing accounts (about $1B moved into period-end balances). Liquidity improved as short-term borrowings decreased and securities paydowns continue to support an earnings-asset remix (management reinvests a portion into higher-yielding uses). Capital: CET1 was 11.3% and tangible book value per share grew ~17% y/y. Outlook/guidance: management expects NII and customer-related fee income to be “moderately increasing” in Q3 2026 vs Q3 2025, modestly higher adjusted expenses (driven by marketing and technology investments) but continued positive operating leverage as revenue growth outpaces expenses. The NII guide incorporates assumptions about Fed rate cuts (detailed below) and potential earnings pickup from fixed-asset repricing and securities/loan remixing.