The beat was driven by credit normalization (credit provision benefit vs expense YoY, not core operating improvement. Adjusted PPNR declined 4% YoY as expenses grew 6% vs revenue growth of 2%. Net interest margin compressed 5 bps compression and cost of deposits rising 11 bps sequentially. Monitor next quarter's NIM trajectory and expense trajectory.
Price Chart
Executive Summary
Zions Bancorporation reported Q3 2026 diluted EPS of $1.78 on net earnings of $262 million, beating consensus of $1.71 by 4.1%. Net interest income rose 2% YoY to $684 million, while the provision for credit losses was an $8 million benefit versus a $49 million expense a year ago. Credit quality remained excellent with net charge-offs of just 0.02% annualized, but adjusted pre-provision net revenue declined 4% YoY as expense growth outpaced revenue growth.
Key Financial Metrics
Key Facts
- Diluted EPS of $1.78 beat consensus of $1.71, up 20% from $1.48 in Q3Q25
- Net earnings applicable to common shareholders of $262 million vs $221 million in 3Q25
- Net interest income of $684 million, up 2% YoY
- Provision for credit losses was an $8 million benefit vs a $49 million expense in 3Q25
- Net charge-offs of $3 million, or 0.02% annualized, down from $56 million (0.37%) in 3Q25
- Adjusted PPNR of $338 million, down 4% from $352 million in 3Q25
- Efficiency ratio of 61.9% vs 59.6% in 3Q25
- Customer deposits (ex-brokered) grew 5% YoY to $74.5 billion
- Loans and leases grew 4% YoY to $62.5 billion
- CET1 capital ratio of 11.8% vs 11.3% in 3Q25
- Tangible book value per share of $43.50, up 13% YoY
- Common dividend increased to $0.48 per share from $0.45 in 3Q25
- Repurchased 1.1 million common shares for $75 million in the quarter
Financial Impact
EPS beat consensus by $0.07 (4.1% beat); net earnings up $41M YoY; credit provision benefit of $57M vs expense of $49M YoY
Risk Factors
- NIM compression and cost of deposits rising 11 bps sequentially
- Adjusted PPNR declined 4% YoY as expenses grew 6% vs revenue growth of 2%
- Cost of deposits rising 11 bps sequentially
- Efficiency ratio 61.9% vs 59.6% in 3Q25
- Credit quality normalization is not a sustainable earnings driver
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000109380-26-000125 |
| Document: earningspresentation-202.htm | 0000109380-26-000125 |
| Document: zion-20261019.htm | 0000109380-26-000125 |
| Document: 0000109380-26-000125-index-headers.html | 0000109380-26-000125 |
| Document: 0000109380-26-000125-index.html | 0000109380-26-000125 |
| Document: 0000109380-26-000125.txt | 0000109380-26-000125 |
| 8-K Data (Synthetic) | 0000109380-26-000125 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 8d ago | Press Release | $64.59 $65.68 | ▲ +1.69% | ▲ +1.61% | $65.68 (+1.69%) |
Oct 19, 2026 8d ago | 8-K | $64.59 $65.68 | ▲ +1.69% | ▲ +1.61% | $65.68 (+1.69%) |
Sep 25, 2026 4w ago | Court Ruling | $63.19 $63.28 | ▲ +0.14% | ▼ −1.06% | $65.68 (+3.94%) |
Sep 16, 2026 5w ago | Press Release | $65.47 $62.65 | ▼ −4.31% | ▼ −6.87% | $65.68 (+0.32%) |
Aug 6, 2026 11w ago | Court Ruling | $70.32 $72.20 | ▲ +2.67% | ▲ +2.28% | $65.68 (−6.60%) |
Aug 5, 2026 11w ago | Insider Cluster | $70.58 $71.61 | ▲ +1.46% | ▲ +0.25% | $65.68 (−6.94%) |
Aug 5, 2026 11w ago | Insider Cluster | $70.58 $71.61 | ▲ +1.46% | ▲ +0.25% | $65.68 (−6.94%) |
Jul 30, 2026 12w ago | Press Release | $69.70 $70.32 | ▲ +0.89% | ▼ −2.62% | $65.68 (−5.77%) |
Jul 20, 2026 14w ago | Press Release | $69.05 $68.52 | ▼ −0.77% | ▲ +0.46% | $65.68 (−4.88%) |
Mar 19, 2026 31w ago | DEFA14A | $54.05 $55.40 | ▲ +2.50% | ▲ +4.65% | $65.68 (+21.52%) |
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