Zions Bancorporation (ZION) ZION Q3 Financial Results Summary
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Zions Bancorporation (ZION) Q3 2026: Earnings Growth Amidst Mixed Performance — Positive Outlook
Zions Bancorporation reported a strong performance in the third quarter of 2026, with net earnings of $262 million and diluted earnings per share (EPS) of $1.78, representing an increase of $41 million or +18.5% compared to $221 million and $1.48 in the same quarter last year. However, this marks a significant decline from the previous quarter's earnings of $452 million and EPS of $3.05.
Key Financial Metrics:
- Net Earnings: $262 million, up $41 million (+18.5% YoY)
- Diluted EPS: $1.78, up $0.30 (+20.3% YoY)
- Net Interest Income: $684 million, up $12 million (+2% YoY)
- Return on Average Tangible Common Equity: 16.2%
- Noninterest Income: $197 million, down $263 million (-57.1% YoY)
- Noninterest Expense: $553 million, up $26 million (+5% YoY)
- Loans and Leases: $62.5 billion, up $2.2 billion (+4% YoY)
- Total Deposits: $77.9 billion, up $3.1 billion (+4% YoY)
Analyst View:
This quarter's results are a mixed bag for shareholders. On one hand, the year-over-year growth in net earnings and EPS is commendable, reflecting improved credit quality and effective management of expenses. The significant reduction in net loan charge-offs to $3 million from $56 million a year ago is particularly noteworthy, indicating a healthier loan portfolio. However, the sharp decline in earnings from the previous quarter raises concerns about the sustainability of this growth, especially given the competitive pressures and flat loan growth compared to Q2 2026.
The increase in noninterest expense by 5% and the substantial drop in noninterest income by 57.1% are also points of concern. The latter was primarily driven by a significant decline in net securities gains, which fell to a loss of $4 million from a gain of $269 million in the previous quarter. This volatility in noninterest income could impact future profitability.
Dividend and Share Buyback:
Zions Bancorporation declared a common stock dividend of $0.48 per share, up from $0.45 in the same quarter last year. Additionally, the company repurchased 1.1 million shares for $75 million during the quarter, reflecting a commitment to returning value to shareholders.
Forward-Looking Catalysts:
Investors should keep an eye on the upcoming quarters for signs of continued improvement in credit quality and noninterest income. The CEO, Harris H. Simmons, indicated expectations for stronger net interest income in a rising rate environment, which could bolster future earnings. Furthermore, the recent acquisition of Basis Multifamily Finance is expected to enhance Zions' capabilities in commercial real estate, particularly in the growing western markets.
In summary, while the third quarter of 2026 shows positive year-over-year growth, the decline from the previous quarter and the mixed performance metrics suggest that shareholders should remain cautiously optimistic as the company navigates a competitive landscape.
CONSOLIDATED STATEMENTS OF INCOME
(In millions)
Note: All amounts in the table are in thousands.
| 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 | |
|---|---|---|---|---|---|
| Interest income | |||||
| Interest and fees on loans | $ 877 | $ 859 | $ 841 | $ 878 | $ 898 |
| Interest on money market investments | 53 | 43 | 39 | 42 | 41 |
| Interest on securities | 116 | 117 | 116 | 121 | 125 |
| Total interest income | 1,046 | 1,019 | 996 | 1,041 | 1,064 |
| Interest expense | |||||
| Interest on deposits | 313 | 281 | 275 | 299 | 313 |
| Interest on short- and long-term borrowings | 49 | 61 | 59 | 59 | 79 |
| Total interest expense | 362 | 342 | 334 | 358 | 392 |
| Net interest income | 684 | 677 | 662 | 683 | 672 |
| Provision for credit losses | |||||
| Provision for loan losses | -14 | 4 | -7 | 6 | 45 |
| Provision for unfunded lending commitments | 6 | -1 | — | — | 4 |
| Total provision for credit losses | -8 | 3 | -7 | 6 | 49 |
| Net interest income after provision for credit losses | 692 | 674 | 669 | 677 | 623 |
| Noninterest income | |||||
| Commercial account fees | 49 | 49 | 48 | 47 | 47 |
| Card fees | 25 | 24 | 22 | 24 | 24 |
| Retail and business banking fees | 21 | 20 | 20 | 20 | 19 |
| Loan-related fees and income | 20 | 22 | 23 | 19 | 20 |
| Capital markets fees and income | 46 | 36 | 28 | 37 | 24 |
| Wealth management fees | 16 | 15 | 16 | 14 | 14 |
| Other customer-related fees | 15 | 16 | 15 | 16 | 15 |
| Customer-related noninterest income | 192 | 182 | 172 | 177 | 163 |
| Dividends and other income | 9 | 9 | 12 | 10 | 15 |
| Securities gains (losses), net | -4 | 269 | 3 | 21 | 11 |
| Total noninterest income | 197 | 460 | 187 | 208 | 189 |
| Noninterest expense |
