ZION · Zions Bancorporation, National Association

Zions Bancorporation's first quarter 2026 results demonstrated strong profitability growth, with diluted EPS increasing 38% year-over-year to $1.56. This performance was primarily driven by a 6% increase in net interest income to $662 million, as the net interest margin expanded 17 basis points to 3.27% compared to the prior year period. The margin improvement reflected lower funding costs, with the rate paid on total deposits and interest-bearing liabilities declining to 1.68% from 2.01%, partially offset by lower earning asset yields. Customer-related noninterest income grew 9% to $172 million, supported by higher loan-related fees and retail banking fees. Credit quality showed significant improvement, with net loan charge-offs declining to 0.03% of average loans from 0.11% in the prior year quarter, and classified loans decreasing 19% to $2.3 billion. The company recorded a negative $7 million provision for credit losses compared to a positive $18 million provision in the prior year period. Noninterest expense increased 4% to $562 million, primarily due to higher compensation costs. The capital position strengthened, with the estimated common equity tier 1 ratio improving to 11.5% from 10.8%. CEO Harris H. Simmons highlighted positive operating leverage of 2.7% and noted the company's agreement to acquire the agency lending business of Basis Multifamily Finance I, LLC, which would expand multifamily housing financing solutions through government-sponsored agency programs.