Zions Bancorporation (ZION) Q4 2025 earnings summary

Executive summary

• Fourth quarter net earnings were $262 million ($1.76 per share), up 19% sequentially and 31% year-over-year, driven by margin expansion, deposit growth, and low net charge-offs.

• Full-year 2025 net earnings reached $895 million ($6.01 per share), a 21% increase over 2024, with tangible book value per share up 21% for the third consecutive year.

• Return on average tangible common equity rose to 17.9% in Q4 and 16.6% for the year.

• Diluted EPS for the quarter was $1.76, up from $1.48 last quarter and $1.34 a year ago, with impacts from a $15 million charitable donation and FDIC special assessment.

Financial highlights

• Net interest margin expanded for the eighth consecutive quarter to 3.31%, up 3bps sequentially and 26bps year-over-year.

• Net interest income for Q4 was $683 million, up 9% year-over-year; adjusted PPNR was $331 million, up 6% year-over-year.

• Customer deposits grew 9% year-over-year; average loans were flat sequentially but up 2.5% year-over-year.

• Adjusted noninterest expense was $548 million, up 8% year-over-year; efficiency ratio was 62.3%.

• Net charge-offs were 0.05% of loans annualized in Q4 and 0.15% for the year.

Outlook and guidance

• For 2026, loan balances, net interest income, adjusted customer-related noninterest income, and adjusted noninterest expense are all expected to increase moderately, with positive operating leverage of 100–150 basis points.

• Commercial and small business lending are projected to lead growth; technology and marketing investments will put mild pressure on expenses.

• Capital distributions are likely to increase in the second half of 2026, subject to regulatory and board approval.