Zions Bancorporation (ZION) Q3 2026 earnings summary

Executive summary

• Q3 net earnings available to common were $262 million, or $1.78 per diluted share, versus $221 million and $1.48 a year earlier; improved credit performance was a primary earnings driver.

• Customer deposits grew faster than loans YoY, supporting a $1.8 billion reduction in borrowed funds; Q2 earnings included $252 million of pre-tax net gains.

Financial highlights

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

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

• Adjusted noninterest expense was $549 million, up 1% QoQ and 5.6% YoY; reported noninterest expense was $553 million, up 5% YoY.

• Provision for credit losses was an $8 million benefit versus a $49 million expense in Q3 2025.

• Nine-month net earnings available to common were $946 million, or $6.39 per diluted share, versus $633 million and $4.25 in 2025; 2026 included substantial Q2 securities gains.

Outlook and guidance

• For Q3 2027 vs. Q3 2026, guidance calls for loan growth of 2%-4%, NII growth of 8%-12%, adjusted customer-related fee growth of 6%-9%, and adjusted expense growth of 4%-6%.

• Loan growth is expected to center on C&I and owner-occupied commercial loans, followed by CRE; NII growth is expected from asset sensitivity, earning-asset remix, and loan and deposit growth.

• Fee growth is expected from capital markets, wealth management, and commercial account fees; technology, marketing, and revenue-generating investments may mildly pressure expenses.

• FY 2026 operating leverage is expected at ~40-50 bps including Basis; excluding the acquisition, it would approach the low end of the prior 100-150 bps outlook.

• Guidance assumes three rate hikes and deposit costs rising to ~2% from 1.59%; mid-3% NIM levels are viewed as achievable in 2027, but no NIM guidance was issued.