Zions Bancorporation Q2 2026 Earnings Overview

Zions Bancorporation (NASDAQ:ZION) released its second‑quarter 2026 results, reporting adjusted earnings per share (EPS) of $1.74, which exceeded analyst consensus of $1.56 by $0.18. Despite the earnings beat, the company’s shares declined 1.2% in after‑hours trading.

The bank generated net earnings of $452 million, translating to $3.05 per diluted share. This total includes a $1.12 per share gain from the sale of Visa Class B‑1 shares and a $0.19 per share gain from Small Business Investment Company (SBIC) investments. Excluding these items, the adjusted EPS remained $1.74, representing a 10% year‑over‑year increase from $1.58 in the comparable prior period.

Net interest income rose 4% year‑over‑year to $677 million, while the net interest margin expanded to 3.27% from 3.17% a year earlier. Customer‑related noninterest income grew 11% to $182 million, driven primarily by stronger capital‑markets activity.

The loan portfolio increased 3% year‑over‑year to $62.5 billion, with an annualized linked‑quarter growth rate of 8%. Total deposits rose 4% to $76.6 billion.

Credit quality metrics showed improvement: the annualized net charge‑off ratio fell to 0.06% from 0.07% in the prior year; nonperforming assets declined to $298 million (representing 0.48% of loans) from $313 million (0.51% of loans); and classified loans decreased to $2.3 billion (3.72% of total loans) from $2.7 billion (4.43% of total loans).

The bank’s capital position strengthened, with the common equity tier 1 (CET1) capital ratio increasing to 11.8% from 11.0% a year ago. Tangible book value per share rose 22% to $44.74, up from $36.81.

Management Commentary

Chairman and CEO Harris H. Simmons stated, “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.”

Key Takeaways

  • Adjusted EPS beat expectations by $0.18, yet the stock slipped 1.2% post‑release.
  • Net earnings of $452 million were bolstered by one‑time gains from Visa share sales and SBIC investments.
  • Loan and deposit balances continued to grow, while credit quality metrics improved and CET1 capital strengthened.