Zions Bancorporation, N.A. One South Main
Salt Lake City, UT 84133 April 20, 2026
https://www.zionsbancorporation.com
First Quarter 2026 Financial Results: FOR IMMEDIATE RELEASE Investor Contact: Andrea Christoffersen (801) 844-7190
Media Contact: Jennifer Johnston (801) 844-7112
Zions Bancorporation, N.A. reports 1Q26 Net Earnings of $232 million, diluted EPS of $1.56
compared with 1Q25 Net Earnings of $169 million, diluted EPS of $1.13, and 4Q25 Net Earnings of $262 million, diluted EPS of $1.76
$1.56 | $232 million | 15.5% | 11.5% |
Net earnings per diluted common share | Net earnings | Return on average tangible common equity2 | Estimated common equity tier 1 ratio |
FIRST QUARTER HIGHLIGHTS¹
Net Interest Income and NIM |
Operating Performance |
Loans and Credit Quality |
Deposits and Borrowed Funds |
Capital |
Net interest income was $662 million, up 6%
NIM was 3.27%, compared with 3.10%, and down from 3.31% in the prior quarter
Pre-provision net revenue² ("PPNR") was $298 million, up 11%; adjusted PPNR² was $301 million, up 13%
Customer-related noninterest income was $172 million, up 9%
Noninterest expense was $562 million, up 4%; adjusted noninterest expense² was $558 million, up 5%
Loans and leases were $61.3 billion, up 2%
The annualized ratio of net loan and lease charge-offs to average loans and leases was 0.03%, compared with 0.11%
The provision for credit losses was negative $7 million, compared with positive $18 million
Nonperforming assets were $292 million, or 0.48% of loans and leases and other real estate owned, compared with $307 million, or 0.51%
Classified loans were $2.3 billion, or 3.80% of loans and leases, compared with $2.9 billion, or 4.82%
Total deposits were $76.9 billion, up 2%; customer deposits (excluding brokered deposits) were $73.1 billion, up 3%
Net Interest Margin
3.27 %
3.10 %
Adjusted PPNR3
$ 301
$ 267
Net charge-offs
$ 4
$ 16
Efficiency ratio3
65.0 %
66.6 %
Brokered deposits were $3.8 billion, down 20%; short-term borrowings were $382 million, down
CEO COMMENTARY
Harris H. Simmons, Chairman and CEO of Zions Bancorporation, commented, "Our first quarter results were solid, with diluted earnings per share rising 38% to $1.56 from $1.13 in the same quarter last year. Adjusted pre-tax pre-provision net revenue increased 13%, as adjusted taxable-equivalent revenue rose 7.4% and adjusted operating expenses increased 4.7%, resulting in positive operating leverage of 2.7%. We were particularly pleased to achieve broad-based strong growth in customer-related noninterest income, which increased 9% over the same quarter last year. Credit quality was strong, with net loan losses to average loans of a mere 0.03% annualized, and a 19% decrease in classified loans over the past year."
Mr. Simmons continued, "Our funding profile has continued to strengthen, with total customer deposits growing $2.2 billion over the past year and long-term debt increasing $1.0 billion, while brokered deposits and short-term borrowings decreased $3.8 billion. Tangible common equity also continues to improve, having increased 19% over the past year."
Mr. Simmons concluded, "During the quarter we were pleased to reach an agreement to acquire the agency lending business of Basis Multifamily Finance I, LLC, a subsidiary of Basis Investment Group. Subject to required approvals, the acquisition will enable us to offer multifamily housing clients an expanded set of permanent financing solutions as an originator, underwriter, and servicer of loans made through government-sponsored agency programs including the Fannie Mae DUS® program, and the Freddie Mac Optigo® Conventional and Small Balance Loan programs."
OPERATING PERFORMANCE2 Three Months Ended March 31,89%
Long-term debt was $2.0 billion, up 104%, due to recent issuances of senior notes
The estimated CET1 capital ratio was 11.5%, compared with 10.8%
Tangible book value per common share was
$41.75, up 19%
(In millions)
2026 20251 Comparisons referenced in the bullet points are calculated based on the current quarter versus the corresponding period in the prior year, unless otherwise noted. The effective tax rate was 20.7% at March 31, 2026, compared with 28.9% at March 31, 2025, primarily due to a required revaluation of deferred tax assets resulting from new state tax legislation enacted during the prior year quarter.
2 For information on non-GAAP financial measures, see pages 17-19.
Comparisons noted below are calculated for the current quarter versus the same prior year period, unless otherwise specified. Growth rates of 100% or more are considered not meaningful ("NM") as they typically reflect a low starting point.
RESULTS OF OPERATIONSNet Interest Income and Margin
1Q26 - 4Q25 | 1Q26 - 1Q25 | ||||||
(In millions) | 1Q26 | 4Q25 | 1Q25 | $ | % | $ | % |
Interest and fees on loans | $ 841 | $ 878 | $ 850 | $ (37) | (4)% | $ (9) | (1)% |
Interest on money market investments | 39 | 42 | 53 | (3) | (7) | (14) | (26) |
Interest on securities | 116 | 121 | 125 | (5) | (4) | (9) | (7) |
Total interest income | 996 | 1,041 | 1,028 | (45) | (4) | (32) | (3) |
Interest on deposits | 275 | 299 | 326 | (24) | (8) | (51) | (16) |
Interest on short- and long-term borrowings | 59 | 59 | 78 | - | - | (19) | (24) |
Total interest expense | 334 | 358 | 404 | (24) | (7) | (70) | (17) |
Net interest income | $ 662 | $ 683 | $ 624 | $ (21) | (3) | $ 38 | 6 |
bps | bps | ||||||
Yield on interest-earning assets 1 | 4.90 % | 5.01 % | 5.08 % | (11) | (18) | ||
Rate paid on total deposits and interest-bearing liabilities 1 | 1.68 % | 1.76 % | 2.01 % | (8) | (33) | ||
Cost of deposits 1 | 1.48 % | 1.56 % | 1.76 % | (8) | (28) | ||
Net interest margin 1 | 3.27 % | 3.31 % | 3.10 % | (4) | 17 | ||
1 Taxable-equivalent rates used where applicable. | |||||||
Net interest income increased $38 million, or 6%, during the first quarter of 2026, compared with the prior year period, largely reflecting lower funding costs. This increase was further supported by an improved mix of average interest-earning assets, driven by growth in higher-yielding loans and a reduction in lower-yielding investment securities and money market investments. As a result, the net interest margin increased to 3.27%, up from 3.10%. The net interest margin declined from 3.31% in the prior quarter, mainly due to lower earning asset yields and a decrease in average demand deposits.
The yield on average interest-earning assets, net of hedging activity, was 4.90% for the first quarter of 2026, compared with 5.08% in the prior year period, reflecting lower interest rates. The net yield on average loans and leases decreased 22 basis points to 5.62%, while the net yield on average investment securities declined 12 basis points to 2.63%. Additionally, the yield on average money market investments decreased 72 basis points to 3.94%, as the short-term nature of these assets resulted in quicker repricing in the declining interest rate environment.
The rate paid on total deposits and interest-bearing liabilities was 1.68% for the first quarter of 2026, compared with 2.01% in the prior year period. The total cost of deposits was 1.48%, compared with 1.76%, reflecting the lower interest rate environment.
Average interest-earning assets remained relatively flat from the prior year period. Average loans and leases increased
$1.5 billion, partially offset by declines in average investment securities and average money market investments of
$666 million and $552 million, respectively.
Average interest-bearing liabilities declined $2.7 billion, or 5%, compared with the prior year period. This decrease was primarily driven by a $1.4 billion reduction in average interest-bearing deposits, largely due to lower brokered deposits, as well as a $1.3 billion decline in average borrowed funds, primarily reflecting a reduction in average short-term borrowings. These decreases were partially offset by an increase in average long-term debt, driven by recent issuances of senior notes.
Noninterest Income
1Q26 - 4Q25 | 1Q26 - 1Q25 | ||
(In millions) | 1Q26 4Q25 1Q25 $ % | $ | % |
Commercial account fees | $ 48 $ 47 $ 45 $ 1 2 % | $ 3 | 7 % |
Card fees | 22 24 23 (2) (8) | (1) | (4) |
Retail and business banking fees | 20 20 17 - - | 3 | 18 |
Loan-related fees and income | 23 19 17 4 21 | 6 | 35 |
Capital markets fees and income | 28 37 27 (9) (24) | 1 | 4 |
Wealth management fees | 16 14 15 2 14 | 1 | 7 |
Other customer-related fees | 15 16 14 (1) (6) | 1 | 7 |
Customer-related noninterest income | 172 177 158 (5) (3) | 14 | 9 |
Dividends and other income | 12 10 7 2 20 | 5 | 71 |
Securities gains (losses), net | 3 21 6 (18) (86) | (3) | (50) |
Noncustomer-related noninterest income | 15 31 13 (16) (52) | 2 | 15 |
Total noninterest income | $ 187 $ 208 $ 171 $ (21) (10) | $ 16 | 9 |
Adjusted customer-related noninterest income 1 | $ 174 $ 175 $ 158 $ (1) (1) | $ 16 | 10 |
1 Net of credit valuation adjustment ("CVA"). For | information on non-GAAP financial measures, see pages 17-19. | ||
Customer-related noninterest income increased $14 million, or 9%, compared with the prior year period. This growth was primarily driven by a $6 million increase in loan-related fees and income, largely reflecting higher residential mortgage loan sales activity. Retail and business banking fees increased $3 million, primarily due to an increase in overdraft fee income, while the $3 million increase in commercial account fees was mainly attributable to higher account analysis fees.
Noncustomer-related noninterest income increased $2 million, or 15%, compared with the prior year period, primarily due to valuation adjustments on mortgage servicing rights and gains on the sale of fixed assets. These increases were partially offset by lower valuation adjustments in our Small Business Investment Company ("SBIC") investment portfolio relative to the prior year quarter.
Noninterest Expense
1Q26 - 4Q25 | 1Q26 - 1Q25 | |||
(In millions) | 1Q26 4Q25 1Q25 $ | % | $ | % |
Salaries and employee benefits | $ 361 $ 335 $ 342 $ 26 | 8 % | $ 19 | 6 % |
Technology, telecom, and information processing | 74 71 70 3 | 4 | 4 | 6 |
Occupancy and equipment, net | 41 43 41 (2) | (5) | - | - |
Professional and legal services | 20 21 13 (1) | (5) | 7 | 54 |
Marketing and business development | 13 30 11 (17) | (57) | 2 | 18 |
Deposit insurance and regulatory expense | 15 6 22 9 | NM | (7) | (32) |
Credit-related expense | 5 7 6 (2) | (29) | (1) | (17) |
Other real estate expense, net | - (2) - 2 | NM | - | NM |
Other | 33 35 33 (2) | (6) | - | - |
Total noninterest expense | $ 562 $ 546 $ 538 $ 16 | 3 | $ 24 | 4 |
Adjusted noninterest expense 1 | $ 558 $ 548 $ 533 $ 10 | 2 | $ 25 | 5 |
1 For information on non-GAAP financial measures, see pages 17-19.
Noninterest expense increased $24 million, or 4%, compared with the prior year quarter. Salaries and employee benefits expense increased $19 million, primarily due to higher incentive compensation accruals reflecting improved profitability, as well as increased base salaries and benefits costs. Professional and legal services expense increased $7 million, largely reflecting higher outsourced services. Technology, telecom, and information processing expense
increased $4 million, mainly due to higher application software, licensing, and maintenance costs. These increases were partially offset by a $7 million decrease in deposit insurance and regulatory expense, primarily due to higher FDIC assessments related to increased classified loans in the prior year quarter.
Adjusted noninterest expense increased $25 million, or 5%, primarily due to the same factors discussed above. The efficiency ratio improved to 65.0% from 66.6% in the prior year quarter, reflecting positive operating leverage. For more information regarding non-GAAP financial measures, see pages 17-19.
BALANCE SHEET ANALYSISInvestment Securities | |||||||
1Q26 - 4Q25 | 1Q26 - 1Q25 | ||||||
(In millions) | 1Q26 | 4Q25 | 1Q25 | $ % | $ % | ||
Investment securities: | |||||||
Available-for-sale, at fair value | $ 9,184 | $ 9,207 | $ 9,223 | $ (23) | - % | $ (39) | - % |
Held-to-maturity, at amortized cost | 8,688 | 8,867 | 9,481 | (179) | (2) | (793) | (8) |
Total investment securities, net of allowance | $ 17,872 $ 18,074 $ 18,704 $ (202) | (1) | $ (832) | (4) | |||
Total investment securities decreased $832 million, or 4%, to $17.9 billion, relative to the prior year quarter, primarily due to principal reductions, net of reinvestments.
Loans and Leases | |||||||||
1Q26 - 4Q25 | 1Q26 - 1Q25 | ||||||||
(In millions) | 1Q26 | 4Q25 | 1Q25 | $ | % | $ | % | ||
Loans held for sale | $ 140 | $ 201 | $ 112 | $ (61) | (30)% | $ 28 | 25 % | ||
Loans and leases: | |||||||||
Commercial | $ 31,858 | $ 31,679 | $ 30,998 | $ 179 | 1 | $ 860 | 3 % | ||
Commercial real estate | 13,658 | 13,396 | 13,593 | 262 | 2 | 65 | - | ||
Consumer | 15,796 | 15,825 | 15,338 | (29) | - | 458 | 3 | ||
Loans and leases, net of unearned income and fees | 61,312 | 60,900 | 59,929 | 412 | 1 | 1,383 | 2 | ||
Less allowance for loan losses | 667 | 678 | 697 | (11) | (2) | (30) | (4) | ||
Loans and leases held for investment, net of allowance | $ 60,645 $ 60,222 $ 59,232 $ 423 | 1 | $ 1,413 | 2 | |||||
Unfunded commitments | $ 30,492 $ 30,244 $ 29,526 $ | 248 | 1 | $ | 966 | 3 | |||
Loans and leases, net of unearned income and fees, increased $1.4 billion, or 2%, to $61.3 billion, compared with the prior year quarter. This growth was driven by an $860 million increase in commercial loans, primarily within the commercial and industrial loan portfolio, and a $458 million increase in consumer loans, largely attributable to growth in the home equity line of credit portfolio.
Credit Quality | |||||||
1Q26 - 4Q25 | 1Q26 - 1Q25 | ||||||
(In millions) | 1Q26 | 4Q25 | 1Q25 | $ | % | $ | % |
Provision for credit losses | $ (7) | $ 6 | $ 18 | $ (13) | NM | $ (25) | NM |
Allowance for credit losses | 713 | 724 | 743 | (11) | (2) | (30) | (4) |
Net loan and lease charge-offs (recoveries) | 4 | 7 | 16 | (3) | (43) | (12) | (75) |
Nonperforming assets | 292 | 320 | 307 | (28) | (9) | (15) | (5) |
Classified loans | 2,332 | 2,380 | 2,891 | (48) | (2) | (559) | (19) |
1Q26 | 4Q25 | 1Q25 | bps | bps | |||
Ratio of ACL to loans and leases outstanding, at period end | 1.16 % | 1.19 % | 1.24 % | (3) | (8) | ||
Annualized ratio of net loan and lease charge-offs (recoveries) to average loans | 0.03 % | 0.05 % | 0.11 % | (2) | (8) | ||
Ratio of nonperforming assets to loans and leases and other real estate owned | 0.48 % | 0.52 % | 0.51 % | (4) | (3) | ||
Ratio of classified loans to total loans and leases | 3.80 % | 3.91 % | 4.82 % | (11) | (102) | ||
During the first quarter of 2026, we recorded a negative $7 million provision for credit losses, compared with positive
$18 million during the prior year period. The allowance for credit losses ("ACL") totaled $713 million at March 31, 2026, compared with $743 million at March 31, 2025. The year-over-year decrease in the ACL primarily reflects lower reserves associated with commercial real estate ("CRE") portfolio-specific risks and changes in loan portfolio composition, partially offset by more adverse economic forecasts and increased lending activity. The ratio of ACL to total loans and leases was 1.16% at March 31, 2026, compared with 1.24% at March 31, 2025.
Net loan and lease charge-offs totaled $4 million in the first quarter of 2026, compared with $16 million in the prior year quarter. At March 31, 2026, nonperforming assets totaled $292 million, or 0.48% of total loans and leases and other real estate owned, compared with $307 million, or 0.51%, in the prior year period. Nonperforming assets were primarily concentrated in the commercial and industrial, consumer 1-4 family residential, and commercial owner-occupied loan portfolios. Classified loans totaled $2.3 billion, or 3.80% of total loans and leases, compared with $2.9 billion, or 4.82%, in the prior year period. The year-over-year decline was primarily driven by reductions in classified CRE exposures, largely attributable to loan payoffs.
Deposits and Borrowed Funds | |||||||||
1Q26 - 4Q25 | 1Q26 - 1Q25 | ||||||||
(In millions) | 1Q26 | 4Q25 | 1Q25 | $ % | $ % | ||||
Deposits: | |||||||||
Noninterest-bearing demand | $ 27,081 | $ 25,823 | $ 24,792 | $ 1,258 | 5 % | $ 2,289 | 9 % | ||
Interest-bearing: | |||||||||
Savings and money market | 40,165 | 39,914 | 39,860 | 251 | 1 | 305 | 1 | ||
Time | 5,866 | 6,070 | 6,269 | (204) | (3) | (403) | (6) | ||
Brokered | 3,795 | 3,837 | 4,771 | (42) | (1) | (976) | (20) | ||
Total interest-bearing | 49,826 | 49,821 | 50,900 | 5 | - | (1,074) | (2) | ||
Total deposits | $ 76,907 $ 75,644 $ 75,692 | $ | 1,263 | 2 | $ | 1,215 | 2 | ||
Customer deposits (excludes brokered deposits) | $ 73,112 | $ 71,807 | $ 70,921 | 1,305 | 2 | 2,191 | 3 | |||
Borrowed funds: | ||||||||||
Federal funds purchased and other short-term | ||||||||||
borrowings | $ 382 | $ 2,872 | $ 3,190 | $ (2,490) | (87) | $ (2,808) | (88) | |||
Long-term debt | 1,963 | 1,472 | 964 | 491 | 33 | 999 | NM | |||
Total borrowed funds | $ 2,345 $ 4,344 $ 4,154 $ (1,999) | (46) | $ (1,809) | (44) | ||||||