Zions Bancorporation National Association Stock Earnings Reports

Zions reported solid Q1 2026 results with net earnings of $232 million ($1.56/diluted share), up 37% year-over-year, driven by revenue growth, lower credit provisions and a lower tax rate. Net interest margin was 3.27% (down 4 bps linked quarter, up 17 bps y/y) while taxable-equivalent net interest income was $662 million. Average loans increased modestly (2.4% annualized) led by commercial lending; period-end customer deposits rose $1.3 billion from year-end. Fee income growth was broad-based, led by capital markets and mortgage sales activity. Credit quality remained strong (net charge-offs ~3 bps annualized; NPA ratio 48 bps) and the allowance for credit losses was 1.16% of loans (239% coverage of nonaccruals). Management highlighted strategic investments: expansion of Capital Markets since 2020, a pending acquisition of Basis Investment Group’s Fannie/Freddie lending programs to bolster multifamily/commercial real estate capabilities, and new consumer/small-business products (Gold account and “beyond the business”) aimed at deposit growth. Expense trends reflected seasonal compensation and investments in technology, marketing and talent; adjusted noninterest expense was $558 million. Outlook: management sees loan growth and margin expansion contributing to a moderately increasing net interest income environment (they estimate NII could grow ~7–8% over the next 12 months if rates remain unchanged), expects adjusted customer-related fee income to be moderately increasing (top end of range likely), and expects adjusted noninterest expense to be moderately increasing. They reaffirm positive operating leverage for full-year 2026 (guiding to 100–150 bps POL) and note strong capital (CET1 11.5%) with ongoing board-approved buyback activity subject to approvals. Management also noted potential regulatory tailwinds from the Basel III “end game” proposal (they preliminarily estimate ~9–10% RWA relief, ~93 bps lift to CET1 if adopted).