Zions Bancorporation Reports Q3 Earnings with Strong Net Income Growth
Zions Bancorporation (ZION) reported third-quarter earnings for fiscal year 2026, showing a significant increase in net income to $262 million or $1.78 per diluted share, up 20% from the prior year period. The growth was driven by higher net interest income and customer-related noninterest revenue. Despite challenges such as rising deposit costs and lower-yielding assets leading to a slight decline in net interest margin (3.23%), Zions managed strong deposit growth of 8.8%, primarily due to money market and interest-bearing accounts. The company also reported improved credit performance with net charge-offs at just 2 basis points, down from 37 basis points the previous year. Management provided updated guidance for future quarters, forecasting an 8%–12% increase in net interest income by Q3 2027 and a projected loan growth of 2% to 4%. Additionally, Zions absorbed $229 million in goodwill from its recent acquisition while maintaining a stable common equity Tier 1 ratio at 11.8%.
Tickers: $ZION
Topics: credit performance deposits earnings loans net interest margin