Zions Bancorporation, National Association

What they do

Zions provides a wide range of banking products and services through seven separately managed affiliate banks, including Zions Bank, California Bank & Trust, Amegy Bank, and others. It offers commercial and small business lending, capital markets and investment banking, commercial real estate lending, retail banking, and wealth management. The affiliates operate under local brands with local decision-making, supported by an enterprise-level 'Other' segment for governance, technology, and back-office operations. As of December 31, 2025, it served over one million customers through 407 branches and 9,195 full-time equivalent employees.

Revenue drivers

• Net interest income — Largest revenue component, increased 8% in 2025 to $3.4 billion annual net revenue, driven by lower funding costs and asset mix shifts; NIM improved to 3.21%.
• Customer-related noninterest income — Increased 4% in 2025 to (amount not specified in provided data), driven by higher retail and business banking fees, capital markets fees, and loan-related fees; excluding CVA, up 5%.
• Commercial and small business banking — Core lending focus, including SBA 7(a) and 504 programs; part of five key growth areas, with emphasis on commercial customer growth and small business lending expansion.
• Capital markets and investment banking — Provides loan syndication, underwriting, M&A advisory, and risk management; contributed to strong capital markets fees in Q2 2026, with customer-related noninterest income up 11%.

Recent performance

In Q2 2026, Zions reported net earnings of $452 million, or $3.05 diluted EPS, up from $243 million, or $1.63, in Q2 2025. Excluding notable items, EPS was $1.74, up 10% year-over-year. Net interest income grew 4% to $677 million, NIM was 3.27%, and adjusted PPNR rose 5% to $332 million. Loans and leases grew 3% year-over-year to $62.5 billion, deposits were up 4% to $76.6 billion, and the estimated CET1 ratio improved to 11.8%. Tangible book value per share increased 22% to $44.74.

Strategy

Zions' strategic objective is balanced growth in customers, pre-tax net income, and shareholder returns, centered on five key growth areas: commercial banking, small business banking, capital markets, wealth management, and consumer banking. It supports these with six strategic enablers: people and empowerment, technology, marketing, operational excellence, risk management, and data and analytics. The affiliate model emphasizes local authority and accountability, while maintaining enterprise-level governance and risk oversight. Key initiatives include expanding small business lending, enhancing capital markets capabilities, broadening wealth management access, and strengthening consumer deposit relationships.

Risks

• Credit risk — Potential losses from borrower defaults, especially in commercial real estate and small business portfolios; Q2 2026 classified loans were 3.72% of loans, down from 4.43% a year ago.
• Interest rate and market risk — Changes in interest rates and economic conditions in Western U.S. markets could affect net interest margin and asset quality; NIM is sensitive to funding costs and asset composition.
• Competition from nonbank players — Competition from credit unions, fintechs, private credit funds, and other new entrants could pressure loan and deposit growth.
• Operational and cybersecurity risk — Reliance on technology systems and third-party providers exposes the bank to fraud, data breaches, and AI-enabled attacks, which could disrupt operations and harm customer confidence.

Outlook

Management expressed satisfaction with quarterly results, citing strong organic growth in customer-related noninterest income, particularly from capital markets, and solid credit performance. The bank expects continued growth in loans and deposits, with a focus on maintaining strong capital ratios and tangible book value growth. Forward-looking statements highlight assumptions about interest rates, economic conditions, and competition, but no specific guidance is provided in the excerpts.