Zions Bancorporation, N.A. One South Main
Salt Lake City, UT 84133 July 20, 2026
https://www.zionsbancorporation.com
Second Quarter 2026 Financial Results: FOR IMMEDIATE RELEASE Investor Contact: Dave Riches (801) 844-7752
Media Contact: Jennifer Johnston (801) 844-7112
Zions Bancorporation, N.A. reports 2Q26 Net Earnings of $452 million, diluted EPS of $3.05 (or $1.74 excluding notable items)
compared with 2Q25 Net Earnings of $243 million, diluted EPS of $1.63 (or $1.58 excluding notable items), and 1Q26 Net Earnings of $232 million, diluted EPS of $1.56
$3.05 | $452 million | 28.6% | 11.8% |
Net earnings per diluted common share | Net earnings | Return on average tangible common equity2 | Estimated common equity tier 1 ratio |
SECOND QUARTER HIGHLIGHTS¹
Net Interest Income and NIM |
Operating Performance |
Loans and Credit Quality |
Deposits and Borrowed Funds |
Capital |
Notable Items |
Net interest income was $677 million, up 4%
NIM was 3.27%, compared with 3.17%, and remained flat compared with the prior quarter
Pre-provision net revenue² ("PPNR") was $597 million, up 84%, and included pre-tax net gains of
$252 million; adjusted PPNR² was $332 million, up 5% (see notable items below)
Customer-related noninterest income was $182 million, up 11%
Noninterest expense was $551 million, up 5%; adjusted noninterest expense² was $546 million, up 5%
Loans and leases were $62.5 billion, up 3%
The annualized ratio of net loan and lease charge-offs to average loans and leases was 0.06%, compared with 0.07%
The provision for credit losses was $3 million, compared with a negative $1 million
Nonperforming assets were $298 million, or 0.48% of loans and leases and other real estate owned, compared with $313 million, or 0.51%
Classified loans were $2.3 billion, or 3.72% of loans and leases, compared with $2.7 billion, or 4.43%
Total deposits were $76.6 billion, up 4%; customer deposits (excluding brokered deposits) were $72.7 billion, up 4%
Brokered deposits remained flat at $3.9 billion; short-term borrowings were $1.2 billion, down 79%
Long-term debt was $2.0 billion, up 102%, due to senior note issuances over the past year
CEO COMMENTARY
Harris H. Simmons, Chairman and CEO of Zions Bancorporation, commented, "We're very pleased with the quarterly results, as earnings per share, excluding net equity investment gains, increased 10% to $1.74, compared to $1.58 in the same period a year ago. Net equity investment gains of $215 million on Visa Class B-1 shares and $37 million on SBIC investments added
$1.12 and $0.19 per share, respectively, compared to net equity investment gains of $9 million, or $0.05 per share a year ago."
Mr. Simmons continued, "We're particularly pleased with the organic growth in customer-related noninterest income, which increased 11% over last year's period, with particularly strong growth from capital markets activities, and solid growth in a variety of other categories. While loan growth compared to last year's quarter was modest at 3%, annualized linked-quarter growth was strong at 8%. Deposits grew 4% from last year and were seasonally lower compared to the first quarter."
Mr. Simmons concluded, "We're also encouraged by strong growth in tangible book value per share, which increased 22% to
$44.74 from $36.81, while our Common Equity Tier 1 capital ratio further strengthened to 11.8% from 11.0% a year ago. At the same time, we're proud of our ongoing solid credit results, with annualized net charge-offs of 0.06%."
OPERATING PERFORMANCE2The estimated CET1 capital ratio was 11.8%, compared with 11.0%
Tangible book value per common share was
$44.74, up 22%
Gain on sale of Visa Class B-1 shares was $215 million, or $1.12 per share
Net unrealized gains from SBIC investments were
$37 million, or $0.19 per share ($44 million unrealized gains less $7 million success fee accrual), compared with $9 million, or $0.05 per share
Net Interest Margin | 3.27 % | 3.17 % | 3.27 % | 3.14 % |
Adjusted PPNR3 | $ 332 | $ 316 | $ 633 | $ 583 |
Net charge-offs | $ 9 | $ 10 | $ 13 | $ 26 |
Efficiency ratio3 | 62.2 % | 62.2 % | 63.6 % | 64.4 % |
(In millions)
Three Months Ended Six Months Ended June 30, June 30, 2026 2025 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.
2 For information on non-GAAP financial measures, see pages 19-22. Excluding $252 million of pre-tax net gains, return on average tangible common equity for the three months ended June 30, 2026 would have been 16.6%.
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
2Q26 - 1Q26 | 2Q26 - 2Q25 | ||||||
(In millions) | 2Q26 | 1Q26 | 2Q25 | $ | % | $ | % |
Interest and fees on loans | $ 859 | $ 841 | $ 875 | $ 18 | 2 % | $ (16) | (2)% |
Interest on money market investments | 43 | 39 | 50 | 4 | 10 | (7) | (14) |
Interest on securities | 117 | 116 | 126 | 1 | 1 | (9) | (7) |
Total interest income | 1,019 | 996 | 1,051 | 23 | 2 | (32) | (3) |
Interest on deposits | 281 | 275 | 312 | 6 | 2 | (31) | (10) |
Interest on short- and long-term borrowings | 61 | 59 | 91 | 2 | 3 | (30) | (33) |
Total interest expense | 342 | 334 | 403 | 8 | 2 | (61) | (15) |
Net interest income | $ 677 | $ 662 | $ 648 | $ 15 | 2 | $ 29 | 4 |
bps | bps | ||||||
Yield on interest-earning assets 1 | 4.90 % | 4.90 % | 5.11 % | - | (21) | ||
Rate paid on total deposits and interest-bearing liabilities 1 | 1.69 % | 1.68 % | 1.97 % | 1 | (28) | ||
Cost of deposits 1 | 1.48 % | 1.48 % | 1.68 % | - | (20) | ||
Net interest margin 1 | 3.27 % | 3.27 % | 3.17 % | - | 10 | ||
1 Taxable-equivalent rates used where applicable. | |||||||
Net interest income increased $29 million, or 4%, in the second quarter of 2026, compared with the prior year period, primarily driven by lower funding costs. This growth was further supported by an improved mix of average interest-earning assets, reflecting growth in higher-yielding loans and a decline in lower-yielding investment securities. As a result, the net interest margin increased to 3.27%, up from 3.17% in the prior year period, and remained unchanged from the previous quarter.
The yield on average interest-earning assets, net of hedging activity, was 4.90% for the second quarter of 2026, compared with 5.11% in the prior year period, reflecting the impact of lower interest rates. The net yield on average loans and leases decreased 25 basis points to 5.61%, while the net yield on average investment securities declined 12 basis points to 2.62%. Additionally, the yield on average money market investments decreased 65 basis points to 4.03%, 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 decreased to 1.69% for the second quarter of 2026, compared with 1.97% in the prior year period. Similarly, the total cost of deposits declined to 1.48%, compared with 1.68%, reflecting the broader lower interest rate environment.
Average interest-earning assets increased $788 million, or 1%, compared with the prior year period. This was driven by a $1.4 billion increase in average loans and leases, partially offset by a $708 million decline in average investment securities.
Average interest-bearing liabilities decreased $2.1 billion, or 4%, compared with the prior year period. This decline was primarily attributable to a $2.7 billion reduction in average borrowed funds, largely reflecting lower short-term borrowings. The decrease was partially offset by an increase in average long-term debt, resulting from senior note issuances over the past year, as well as a $571 million increase in average interest-bearing deposits.
Noninterest Income
2Q26 - 1Q26 | 2Q26 - 2Q25 | ||
(In millions) | 2Q26 1Q26 2Q25 $ % | $ | % |
Commercial account fees | $ 49 $ 48 $ 46 $ 1 2 % | $ 3 | 7 % |
Card fees | 24 22 24 2 9 | - | - |
Retail and business banking fees | 20 20 19 - - | 1 | 5 |
Loan-related fees and income | 22 23 19 (1) (4) | 3 | 16 |
Capital markets fees and income | 36 28 28 8 29 | 8 | 29 |
Wealth management fees | 15 16 14 (1) (6) | 1 | 7 |
Other customer-related fees | 16 15 14 1 7 | 2 | 14 |
Customer-related noninterest income | 182 172 164 10 6 | 18 | 11 |
Dividends and other income | 9 12 12 (3) (25) | (3) | (25) |
Securities gains (losses), net | 269 3 14 266 NM | 255 | NM |
Noncustomer-related noninterest income | 278 15 26 263 NM | 252 | NM |
Total noninterest income | $ 460 $ 187 $ 190 $ 273 NM | $ 270 | NM |
Adjusted customer-related noninterest income 1 | $ 181 $ 174 $ 164 $ 7 4 | $ 17 | 10 |
1 Net of credit valuation adjustment ("CVA"). For | information on non-GAAP financial measures, see pages 19-22. | ||
Customer-related noninterest income increased $18 million, or 11%, compared with the prior year period, reflecting broad-based growth across nearly all revenue streams. Capital markets fees and income increased $8 million, largely attributable to higher real estate capital markets activity and increased investment banking advisory fees. Loan-related fees and income increased $3 million, supported by higher residential mortgage loan sales activity, while the $3 million increase in commercial account fees was mainly due to growth in account analysis fees.
Noncustomer-related noninterest income increased $252 million, compared with the prior year period, primarily driven by a $215 million gain on the sale of Class B-1 shares of Visa, Inc., as well as $44 million in unrealized gains within the Small Business Investment Company ("SBIC") investment portfolio. In the prior year period, we recognized an $11 million unrealized gain related to the successful completion of the initial public offering of one of our SBIC investments.
Noninterest Expense
2Q26 - 1Q26 | 2Q26 - 2Q25 | |||
(In millions) | 2Q26 1Q26 2Q25 $ | % | $ | % |
Salaries and employee benefits | $ 344 $ 361 $ 336 $ (17) | (5)% | $ 8 | 2 % |
Technology, telecom, and information processing | 72 74 65 (2) | (3) | 7 | 11 |
Occupancy and equipment, net | 44 41 40 3 | 7 | 4 | 10 |
Professional and legal services | 22 20 13 2 | 10 | 9 | 69 |
Marketing and business development | 14 13 12 1 | 8 | 2 | 17 |
Deposit insurance and regulatory expense | 7 15 20 (8) | (53) | (13) | (65) |
Credit-related expense | 10 5 6 5 | NM | 4 | 67 |
Other real estate expense, net | 1 - - 1 | NM | 1 | NM |
Other | 37 33 35 4 | 12 | 2 | 6 |
Total noninterest expense | $ 551 $ 562 $ 527 $ (11) | (2) | $ 24 | 5 |
Adjusted noninterest expense 1 | $ 546 $ 558 $ 521 $ (12) | (2) | $ 25 | 5 |
1 For information on non-GAAP financial measures, see pages 19-22.
Noninterest expense increased $24 million, or 5%, compared with the prior year quarter. Professional and legal services expense increased $9 million, primarily reflecting higher outsourced services and technology consulting costs. Salaries and employee benefits expense increased $8 million, largely due to higher incentive compensation accruals aligned with improved profitability, as well as increased employee benefits costs.
Technology, telecom, and information processing expense increased $7 million, driven by higher application software, licensing, and maintenance costs. Credit-related expense rose $4 million, primarily due to increased loan-related legal costs, while occupancy and equipment expense increased $4 million, mainly reflecting higher rental and building maintenance costs. Other noninterest expense increased $2 million, largely due to a higher success fee accrual associated with SBIC investments and higher legal reserves in the prior year quarter, partially offset by reductions in other miscellaneous expenses.
These increases were partially offset by a $13 million decline in deposit insurance and regulatory expense, driven by a
$6 million decrease from an updated estimate of the FDIC special assessment, as well as higher FDIC assessment costs in the prior year quarter associated with elevated levels of classified loans.
Adjusted noninterest expense increased $25 million, or 5%, primarily due to the same factors discussed above. The efficiency ratio remained stable at 62.2%, consistent with the prior year quarter, and improved from 65.0% in the previous quarter. For more information regarding non-GAAP financial measures, see pages 19-22.
BALANCE SHEET ANALYSISInvestment Securities | |||||||
2Q26 - 1Q26 | 2Q26 - 2Q25 | ||||||
(In millions) | 2Q26 | 1Q26 | 2Q25 | $ % | $ % | ||
Investment securities: | |||||||
Available-for-sale, at fair value | $ 9,239 | $ 9,184 | $ 9,116 | $ 55 | 1 % | $ 123 | 1 % |
Held-to-maturity, at amortized cost | 8,477 | 8,688 | 9,272 | (211) | (2) | (795) | (9) |
Total investment securities, net of allowance | $ 17,716 $ 17,872 $ 18,388 $ (156) | (1) | $ (672) | (4) | |||
Total investment securities decreased $672 million, or 4%, to $17.7 billion, relative to the prior year quarter, primarily due to principal reductions, net of reinvestments.
Loans and Leases | |||||||
2Q26 - 1Q26 | 2Q26 - 2Q25 | ||||||
(In millions) | 2Q26 | 1Q26 | 2Q25 | $ | % | $ | % |
Loans held for sale | $ 77 | $ 140 | $ 172 | $ (63) | (45)% | $ (95) | (55)% |
Loans and leases: | |||||||
Commercial | $ 32,640 | $ 31,858 | $ 31,626 | $ 782 | 2 | $ 1,014 | 3 |
Commercial real estate | 14,063 | 13,658 | 13,611 | 405 | 3 | 452 | 3 |
Consumer | 15,778 | 15,796 | 15,576 | (18) | - | 202 | 1 |
Loans and leases, net of unearned income and fees | 62,481 | 61,312 | 60,813 | 1,169 | 2 | 1,668 | 3 |
Less allowance for loan losses Loans and leases held for investment, net of allowance | 662 667 690 (5) $ 61,819 $ 60,645 $ 60,123 $ 1,174 | (1) 2 | (28) $ 1,696 | (4) 3 | |||
Unfunded commitments | $ 29,812 $ 30,492 $ 29,564 $ (680) | (2) | $ 248 | 1 | |||
Loans and leases, net of unearned income and fees, increased $1.7 billion, or 3%, to $62.5 billion, compared with the prior year quarter. This growth was primarily driven by a $1.0 billion increase in commercial loans, largely within the commercial and industrial loan portfolio, along with a $452 million increase in commercial real estate loans, mainly within the term loan portfolio.
The $95 million decrease in loans held for sale compared to the prior year quarter primarily reflects higher loan sale activity, including both recurring flow sales and portfolio sales, resulting in lower balances of real estate capital markets loans and 1-4 family residential loans held at period end.
Credit Quality | |||||||
2Q26 - 1Q26 | 2Q26 - 2Q25 | ||||||
(In millions) | 2Q26 | 1Q26 | 2Q25 | $ | % | $ | % |
Provision for credit losses | $ 3 | $ (7) | $ (1) | $ 10 | NM | $ 4 | NM |
Allowance for credit losses | 707 | 713 | 732 | (6) | (1)% | (25) | (3)% |
Net loan and lease charge-offs | 9 | 4 | 10 | 5 | NM | (1) | (10) |
Nonperforming assets | 298 | 292 | 313 | 6 | 2 | (15) | (5) |
Classified loans | 2,327 | 2,332 | 2,697 | (5) | - | (370) | (14) |
2Q26 | 1Q26 | 2Q25 | bps | bps | |||
Ratio of ACL to loans and leases outstanding, at period end | 1.13 % | 1.16 % | 1.20 % | (3) | (7) | ||
Annualized ratio of net loan and lease charge-offs (recoveries) to average loans | 0.06 % | 0.03 % | 0.07 % | 3 | (1) | ||
Ratio of nonperforming assets to loans and leases and other real estate owned | 0.48 % | 0.48 % | 0.51 % | - | (3) | ||
Ratio of classified loans to total loans and leases | 3.72 % | 3.80 % | 4.43 % | (8) | (71) | ||
During the second quarter of 2026, we recorded a $3 million provision for credit losses, compared with negative $1 million during the prior year period. The allowance for credit losses ("ACL") totaled $707 million at June 30, 2026, compared with $732 million at June 30, 2025. The year-over-year decrease in the ACL primarily reflects changes in loan portfolio composition and lower reserves associated with commercial real estate ("CRE") portfolio-specific risks, partially offset by more adverse economic forecasts and increased lending activity. The ratio of ACL to total loans and leases was 1.13% at June 30, 2026, compared with 1.20% at June 30, 2025.
Net loan and lease charge-offs totaled $9 million in the second quarter of 2026, compared with $10 million in the prior year quarter. At June 30, 2026, nonperforming assets totaled $298 million, or 0.48% of total loans and leases and other real estate owned, compared with $313 million, or 0.51%, in the prior year period. Nonperforming assets were primarily concentrated within the commercial and industrial, consumer 1-4 family residential, and commercial owner-occupied loan portfolios. Classified loans declined to $2.3 billion, or 3.72% of total loans and leases, compared with
$2.7 billion, or 4.43%, in the prior year period, driven mainly by reductions in classified CRE exposures, largely attributable to loan payoffs.
Deposits and Borrowed Funds
2Q26 - 1Q26 2Q26 - 2Q25
(In millions) 2Q26 | 1Q26 | 2Q25 | $ | % | $ % | ||||
Deposits: | |||||||||
Noninterest-bearing demand $ 26,233 | $ 27,081 | $ 25,413 | $ (848) | (3)% | $ 820 3 % | ||||
Interest-bearing: | |||||||||
Savings and money market | 40,657 | 40,165 | 38,254 | 492 | 1 | 2,403 | 6 | ||
Time | 5,783 | 5,866 | 6,200 | (83) | (1) | (417) | (7) | ||
Brokered | 3,935 | 3,795 | 3,933 | 140 | 4 | 2 | - | ||
Total interest-bearing | 50,375 | 49,826 | 48,387 | 549 | 1 | 1,988 | 4 | ||
Total deposits | $ 76,608 $ 76,907 $ 73,800 | $ | (299) | - | $ | 2,808 | 4 | ||
Customer deposits (excludes brokered deposits) | $ 72,673 | $ 73,112 | $ 69,867 | (439) | (1) | 2,806 | 4 | |||
Borrowed funds: | ||||||||||
Federal funds purchased and other short-term | ||||||||||
borrowings | $ 1,219 | $ 382 | $ 5,845 | $ 837 | NM | $ (4,626) | (79) | |||
Long-term debt | 1,956 | 1,963 | 970 | (7) | - | 986 | NM | |||
Total borrowed funds | $ 3,175 $ 2,345 $ 6,815 $ 830 | 35 | $ (3,640) | (53) | ||||||