Zions Bancorporation (ZION) investor relations material

Executive summary

• Q3 net earnings available to common were $262 million, or $1.78 per diluted share, versus $221 million and $1.48 in Q3 2025; earnings rose 20% YoY.

• Earnings growth reflected higher net interest income and customer-related fees, improved credit performance, and modest loan growth.

• Average loans grew 3.7% annualized QoQ and 2.7% YoY; average customer deposits grew 8.8% annualized QoQ and 5.2% YoY.

Financial highlights

• Tax-equivalent net interest income was $684 million, up $7 million QoQ and $12 million YoY; adjusted PPNR was $338 million, up 2% QoQ and down 4% YoY.

• Adjusted customer-related fee income was $182 million, up 5% YoY; reported customer-related noninterest income was $192 million, up 18% YoY.

• Adjusted noninterest expense was $549 million, up 1% QoQ and 5.6% YoY; the efficiency ratio was 61.9%, down 30 bps QoQ and up 230 bps YoY.

• Q2 GAAP earnings included $215 million of pre-tax Visa share-sale gains and $37 million of SBIC portfolio valuation gains.

Outlook and guidance

• For Q3 2027 versus Q3 2026, expectations are loan growth of 2%-4%, net interest income growth of 8%-12%, adjusted customer-related fee growth of 6%-9%, and adjusted expense growth of 4%-6%.

• Loan growth is expected to be led by C&I and owner-occupied commercial lending, followed by a more modest CRE contribution.

• NII growth is expected from asset sensitivity, earning-asset remix, and loan and deposit growth; fee growth is expected from capital markets, wealth, and commercial account fees.

• NII guidance assumes three rate hikes and deposit costs rising to ~2% from 1.59%; deposit repricing remains sensitive to competition and deposit beta.

• FY 2026 operating leverage is expected at ~40-50 bps including Basis; mid-3% NIM levels are viewed as achievable in 2027 under assumed rate and deposit conditions.