Zions Bancorporation, N.A. Q2 Earnings Call Highlights

Zions Bancorporation, N.A. Q2 Earnings Call Highlights

Zions reported a strong Q2 2026 profit jump, with net earnings of $452 million, or $3.05 per share, boosted by one-time gains from Visa share liquidation and an SBIC investment. Excluding those items, EPS was $1.74, up from $1.58 a year earlier. Core banking trends remained stable, as net interest income rose and net interest margin held at 3.27%. Loan growth was modest but positive, deposits increased, and management said it still expects moderate to upper-single-digit NII growth over the next year depending on rates. Fee income, credit quality, and capital all stayed healthy, with capital markets driving higher noninterest income, charge-offs remaining low, and the CET1 ratio rising to 11.8%. Management also reiterated an organic-growth focus while saying buybacks remain sustainable.

Zions Bancorporation, N.A. NASDAQ: ZION reported sharply higher second-quarter 2026 earnings, helped by one-time gains, while management pointed to steady net interest margin, modest loan growth, stronger fee income and solid credit quality. Chairman and Chief Executive Officer Harris Simmons said the company was “reasonably pleased” with the results, which he said reflected “meaningful year-over-year improvement and continued progress” on strategic priorities. Net earnings available to common shareholders were $452 million, or $3.05 per share.

The quarter included two notable items: a $215 million pretax gain from the liquidation of Visa Class B-1 shares and a $37 million net unrealized pretax gain tied to a small business investment company investment, after a success fee accrual. Excluding those items, Simmons said earnings per share were $1.74, up from $1.58 in the year-earlier quarter.

Net Interest Income and Margin Remain Stable Chief Financial Officer Ryan Richards said taxable-equivalent net interest income was $677 million, up $15 million, or 2%, from the prior quarter and up $29 million, or 4%, from the year-ago quarter. The net interest margin was 3.27%, flat with the prior quarter and up 10 basis points from a year earlier. Richards said the year-over-year margin improvement primarily reflected lower funding costs for deposits and borrowings. Average loans increased at a 4.7% annualized rate during the quarter, led by commercial and industrial lending, while average customer deposits rose 4.0%.

Management faced repeated questions from analysts about the company’s net interest income outlook and the impact of potential rate hikes. Richards said the company’s guidance incorporated one rate increase implied by the forward curve at the time of its forecast. He later clarified that, with one hike included, the company sees the potential for upper-single-digit year-over-year net interest income growth by the second quarter of 2027. Without a rate hike, Richards said net interest income would still be expected to increase moderately.

Deposit Competition Remains a Focus Executives described the deposit market as competitive, particularly as some targeted deposit campaigns approach wholesale funding rates. Richards said the company saw noninterest-bearing balances decline on a period-end basis, partly reflecting second-quarter seasonality, while interest-bearing balances increased. President and Chief Operating Officer Scott McLean said the company’s marketing efforts are focused on granular consumer and small-business deposits. Simmons highlighted the launch of Business Beyond, a new deposit and payments account for small businesses, which follows the consumer-focused Gold Account introduced last ye...