Zions Bancorporation (ZION) Q1 2026 earnings summary

Executive summary

• Net earnings for Q1 2026 were $232 million ($1.56 per share), up 37% year-over-year, driven by higher net interest and noninterest income, improved credit quality, and positive operating leverage.

• Adjusted pre-provision net revenue increased 13% year-over-year, with efficiency ratio improving to 65.0% from 66.6% and return on average tangible common equity rising to 15.5%.

• Announced acquisition of Basis Multifamily Finance I, LLC's agency lending business to expand multifamily lending capabilities, pending regulatory approval.

• Credit quality remained strong, with net charge-offs at 0.03% of loans annualized and classified loans down 19% year-over-year.

• Customer-related noninterest income grew 9% year-over-year, supported by new product launches and capital markets activity.

Financial highlights

• Net interest income was $662 million, up 6% year-over-year; net interest margin rose to 3.27%, up 17 bps year-over-year and down 4 bps sequentially.

• Adjusted pre-provision net revenue was $301 million, up 13% year-over-year and down 9% sequentially.

• Total loans and leases grew 2% to $61.3 billion; average loans grew 2.5% year-over-year, led by commercial lending.

• Customer deposits (excluding brokered) increased 3% to $73.1 billion; period-end customer deposits increased $1.3 billion (1.8%) from year-end.

• Credit losses remained low at 3 bps annualized of average loans; allowance for credit losses to loans was 1.16%.

Outlook and guidance

• Net interest income, loan balances, adjusted customer-related fee income, and noninterest expense are all expected to moderately increase in Q1 2027 versus Q1 2026.

• Positive operating leverage of 100-150 bps expected for full year 2026, with continued improvement in funding profile and tangible common equity.

• Acquisition of agency lending business expected to expand multifamily housing financing solutions and enhance capital markets capabilities.