NEW YORK, July 20, 2026, 18:05 EDT
- Diluted earnings per share for the second quarter were $3.05, up from $1.63 in the same period last year.
- Gains from Visa and small-business investments added $1.31 per share.
- After-hours trading saw shares at $70.10, a decrease of 2.5% compared to Monday’s closing price.
Zions Bancorporation, National Association posted a significant rise in profit on Monday. However, two equity gains accounted for 43% of diluted earnings per share. Shares declined following the results.
The main Nasdaq session was finished, but after-hours trading continued.
The division of earnings carries greater significance than the overall increase. Earnings per share, excluding equity gains, reached $1.74, marking a 10% rise year-on-year. Analysts’ consensus had forecasted around $1.57.
EPS came in at $3.05. Selling Visa Inc. NYSE:V Class B-1 shares accounted for an additional $1.12. Gains from small-business investments brought in a further $0.19.
Core revenue growth was modest. Adjusted revenue climbed 2% since March to reach $878 million. Net interest margin remained steady at 3.27%. Customer-related fees advanced 11% versus a year earlier.
| Operating measure | 2Q 2026 | 1Q 2026 | 2Q 2025 |
|---|---|---|---|
| EPS, not including equity gains | $1.74 | $1.56 | $1.58 |
| Adjusted revenues | $878 mln | $859 mln | $837 mln |
| Net interest income | $677 mln | $662 mln | $648 mln |
| Net interest margin | 3.27% | 3.27% | 3.17% |
| Loans at period end | $62.5 bln | $61.3 bln | $60.8 bln |
| Customer deposit totals | $72.7 bln | $73.1 bln | $69.9 bln |
| Classified loans/loans ratio | 3.72% | 3.80% | 4.43% |
Data is based on company disclosures and has not been audited. Adjusted results do not include certain non-core items.
The strongest indication for investors comes from the capital position. The estimated preliminary common-equity Tier 1 ratio was 11.8%, standing 80 basis points higher than a year earlier.
Zions’ tangible book value increased by 22% to $44.74 per share. At Monday’s closing price of $71.89, the stock was trading at roughly 1.61 times tangible book value. This heightens the focus on how future capital will be allocated.
Zions returned $142 million to shareholders via dividends and share buybacks. The bank repurchased 1.2 million shares for $75 million in the quarter. The number of common shares outstanding declined by about 1% compared to the previous year.
Loan balances increased, climbing 2% from March, matching an annualised growth rate of 8%. Customer deposits dipped marginally compared to March but were up 4% from a year earlier.
Funding costs stayed manageable. Total deposit costs averaged 1.48%, compared with 1.68% a year earlier. This supported higher net interest income, even though the quarterly margin was unchanged.
Credit indicators showed improvement overall, though progress was uneven. Net charge-offs accounted for 0.06% of average loans. The volume of classified loans fell, with non-performing assets at 0.48% of loans.
Chairman and CEO Harris Simmons said he was “particularly pleased with the organic growth in customer-related noninterest income.” Capital-markets fees increased to $36 million from $28 million. PR Newswire
Expenses were also higher. Adjusted non-interest expenses climbed 5% to $546 million. Adjusted pre-provision net revenue was up 5% to $332 million.
Management anticipates moderate increases in loans and net interest income through June 2027. The company also projected positive operating leverage. These forecasts are still preliminary and are subject to rates, deposits, and credit environment.
Zions rose 2.3% over the previous week, according to Friday’s closing figures. Shares slipped 0.5% in Monday’s regular trading. Investors will see the first entire-session reaction to the results on Tuesday.
KeyCorp NYSE:KEY is set to announce its results on Tuesday, providing a benchmark for deposit rates and loan appetite. Shares of KeyCorp dropped 0.9% on Monday.
Risks: Credit concerns persist due to commercial real estate exposure. Zions posted an accumulated other comprehensive loss of $1.9 billion. While lower rates may ease funding expenses, they could also put pressure on asset yields.
