Zions Bancorporation, National Association

NASDAQ: ZION

$69.26 ▲ +0.10 (+0.14%)

At close: Jul 24, 2026 · 3:59 PM UTC

Financial Ratios

Market Cap10.19 Bn

P/E10.64

P/S3.21

Div. Yield0.03

Total Debt (Qtr)1.96 Bn

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About

Zions Bancorporation, National Association is a banking institution headquartered in Salt Lake City Utah. The bank delivers a broad array of traditional and digital banking products and services to customers across eleven western states including Arizona California Colorado Idaho Nevada New Mexico Oregon Texas Utah Washington and Wyoming. It operates through a network of four hundred seven branches and various online mobile and digital channels. As of December 31 2025 the bank reported total assets of approximately eighty nine billion dollars and served more than one million customers. The organization emphasizes local decision making and community focus to drive customer satisfaction and shareholder value.

Zions Bancorporation, National Association generates revenue primarily from net interest income and noninterest income streams. Interest income arises from lending activities such as commercial and industrial loans owner occupied financing municipal loans and residential mortgages. Noninterest income comes from fees for services including cash management merchant processing wealth management advisory capital markets underwriting and trust services. The bank serves a diverse mix of borrowers ranging from small and medium sized enterprises to large corporations public sector entities and individual consumers. Its product suite encompasses commercial and small business banking capital markets and investment banking commercial real estate lending retail banking and wealth management solutions. This diversified revenue base helps the bank mitigate reliance on any single line of business.

The company organizes its operations into eight reportable segments. Seven of these segments are the affiliate banks each operating under its own local brand and management team. The remaining segment is designated as the Other segment and provides enterprise level support functions.

• Zions Bank operates as the original affiliate bank delivering full service banking to customers in Utah and surrounding states offering commercial lending retail mortgages wealth management and treasury solutions under a locally managed model.

• California Bank & Trust provides banking services focused on California markets including commercial real estate lending corporate banking and personal deposit products supported by a dedicated regional team.

• Amegy Bank serves the Texas and Southwest regions with a focus on energy related lending commercial business banking and wealth management services tailored to local industry needs.

• National Bank of Arizona concentrates on the Arizona marketplace delivering commercial loans residential mortgage products and deposit services while emphasizing community relationships and local decision making.

• Nevada State Bank provides a full range of banking solutions to consumers and businesses in Nevada including commercial lending retail banking and wealth advisory services.

• Vectra Bank Colorado focuses on Colorado markets offering commercial and industrial lending real estate financing and personal banking products through a locally empowered management structure.

• The Commerce Bank of Washington which also does business as The Commerce Bank of Oregon serves customers in Washington and Oregon with commercial lending mortgage financing and retail deposit services.

• The Other segment supplies enterprise level functions such as governance risk oversight capital allocation strategic planning centralized technology infrastructure back office operations and certain business lines that are not managed through the affiliate bank structure.

Zions Bancorporation, National Association holds a notable position among regional banks in the western United States. Its primary competitors include other commercial banks credit unions financial technology firms and private credit funds. Credit unions are especially strong in Utah and Idaho creating intense local competition for deposits and loans. The bank differentiates itself through the quality of its customer service its deep understanding of local markets the accessibility of its branch network the breadth of its product offerings and the strength of its long term customer relationships. These strengths enable it to attract and retain clients while maintaining disciplined risk management and capital adequacy.

Zions Bancorporation, National Association serves more than one million customers encompassing individuals small and medium sized businesses large corporations municipal and public sector entities and wealth management clients. While the filing does not disclose specific customer names the bank’s client base spans retail consumers seeking mortgages and personal loans entrepreneurs needing working capital and corporations requiring complex financing and advisory services.

Investment Thesis

▲ Bull case

The bank is rolling out new deposit products such as the gold account for consumers and the business beyond tiered checking for small businesses which are designed to attract relationship based balances that are cheaper than brokered deposits. Management noted that these relationship deposits can be 25 to 35 basis points accretive versus brokered funding sources. Early pilot results in Colorado and Arizona show strong reception with 4,000 new gold accounts opened in the quarter and a goal of 20,000 for the year. This deposit franchise enhancement should lower overall funding costs and improve net interest margin over time while providing a stable core of retail and small business liabilities.
The pending acquisition of Basis Investment Groups Fannie and Freddie agency lending programs is expected to meaningfully expand the banks capital markets platform and increase fee income from multifamily and commercial mortgage origination. This transaction would add an experienced team and existing servicing rights that complement the banks existing capital markets expertise in syndications and hedging. By adding agency lending capabilities the bank can capture a larger share of the multifamily financing market in the Western United States where demand for multifamily housing remains strong. The resulting boost to capital markets revenue should help diversify earnings away from traditional interest income and support the positive operating leverage outlook of 100 to 150 basis points for 2026.
The appointment of Mike Selfridge as Executive Vice President and Head of Wealth Management brings deep expertise in serving ultra high net worth clients and family offices from his prior roles at Bessemer Trust and First Republic Bank. This hire signals the banks intention to grow its wealth management advisory platform which typically generates higher fee margins than traditional banking products. With Selfridge overseeing lending private credit and banking solutions for affluent clients the bank can cross sell wealth management services to its existing commercial and retail customer base. The wealth management expansion should contribute to sustained growth in non interest income and improve overall profitability.
Management estimates that the Basel III Endgame proposal could provide between 9% and 10% relief on risk weighted assets which would translate to roughly 93 basis points of additional Common Equity Tier 1 capital. This potential capital buffer would give the bank greater flexibility to pursue share repurchases dividend increases or additional investments without straining regulatory ratios. The board has already authorized up to $225 million of share repurchases for the remainder of 2026 bringing the full year target to $300 million indicative of confidence in capital generation. Should the RWA relief materialize the bank could accelerate its capital return program while maintaining a strong CET1 ratio above 11%.
Investments in core system modernization and the use of artificial intelligence for document review contract analysis and credit exams are yielding measurable productivity improvements across the organization. The bank reports that AI tools are helping employees find relevant information faster reducing manual effort in credit underwriting and contract processing. These efficiency gains translate into lower operating expenses relative to revenue growth supporting the concept of positive operating leverage. Over time the technology upgrade should also enhance the customer experience by speeding up loan approvals and account opening processes.

The bank is rolling out new deposit products such as the gold account for consumers and the business beyond tiered checking for small businesses which are designed to attract relationship based balances that are cheaper than brokered deposits. Management noted that these relationship deposits can be 25 to 35 basis points accretive versus brokered funding sources. Early pilot results in Colorado and Arizona show strong reception with 4,000 new gold accounts opened in the quarter and a goal of 20,000 for the year. This deposit franchise enhancement should lower overall funding costs and improve net interest margin over time while providing a stable core of retail and small business liabilities.
The pending acquisition of Basis Investment Groups Fannie and Freddie agency lending programs is expected to meaningfully expand the banks capital markets platform and increase fee income from multifamily and commercial mortgage origination. This transaction would add an experienced team and existing servicing rights that complement the banks existing capital markets expertise in syndications and hedging. By adding agency lending capabilities the bank can capture a larger share of the multifamily financing market in the Western United States where demand for multifamily housing remains strong. The resulting boost to capital markets revenue should help diversify earnings away from traditional interest income and support the positive operating leverage outlook of 100 to 150 basis points for 2026.
The appointment of Mike Selfridge as Executive Vice President and Head of Wealth Management brings deep expertise in serving ultra high net worth clients and family offices from his prior roles at Bessemer Trust and First Republic Bank. This hire signals the banks intention to grow its wealth management advisory platform which typically generates higher fee margins than traditional banking products. With Selfridge overseeing lending private credit and banking solutions for affluent clients the bank can cross sell wealth management services to its existing commercial and retail customer base. The wealth management expansion should contribute to sustained growth in non interest income and improve overall profitability.
Management estimates that the Basel III Endgame proposal could provide between 9% and 10% relief on risk weighted assets which would translate to roughly 93 basis points of additional Common Equity Tier 1 capital. This potential capital buffer would give the bank greater flexibility to pursue share repurchases dividend increases or additional investments without straining regulatory ratios. The board has already authorized up to $225 million of share repurchases for the remainder of 2026 bringing the full year target to $300 million indicative of confidence in capital generation. Should the RWA relief materialize the bank could accelerate its capital return program while maintaining a strong CET1 ratio above 11%.
Investments in core system modernization and the use of artificial intelligence for document review contract analysis and credit exams are yielding measurable productivity improvements across the organization. The bank reports that AI tools are helping employees find relevant information faster reducing manual effort in credit underwriting and contract processing. These efficiency gains translate into lower operating expenses relative to revenue growth supporting the concept of positive operating leverage. Over time the technology upgrade should also enhance the customer experience by speeding up loan approvals and account opening processes.

▼ Bear case

Persistent pricing pressure in commercial real estate lending is limiting the banks ability to widen spreads on new originations and may compress net interest margin over time. Management acknowledged that competition for CRE loans has intensified as other lenders vie for market share in the same geographic footprint. While the CRE portfolio remains granular with low nonaccruals and delinquencies the pricing environment could hinder future loan yield improvement. If the pressure persists the bank may need to rely more heavily on fee income or loan growth in other segments to maintain NII expansion.
The Chief Credit Officer noted a slight increase this quarter in criticized and classified loans within the commercial and industrial portfolio even while overall credit quality metrics remain strong. This uptick suggests that certain sectors such as restaurants and consumer facing businesses are experiencing rising expense pressures that could affect borrower ability to repay. If these trends continue the bank may see higher provisioning needs and a rise in net charge offs that would erode profitability. Monitoring of these segments is therefore critical to avoid unexpected credit deterioration.
A meaningful portion of the banks non interest income growth came from the sale of residential mortgage loans held for sale which introduces volatility tied to housing market activity and refinancing waves. Should mortgage rates rise or housing demand weaken the volume of loans available for sale could decline reducing this fee income stream. Over reliance on this transactional revenue makes earnings less predictable compared to stable interest income or advisory fees. The bank would need to develop other non interest sources to offset any potential slowdown in mortgage loan sales.
The banks strategy to grow low cost deposits depends heavily on the success of new products such as the gold account and business beyond and on convincing customers to move off balance sheet funds onto the bank's books. Adoption of these products may be slower than anticipated especially if competitors offer similar or more attractive features. Additionally the migration of off balance sheet deposits is contingent on client decisions and may not materialize at the pace needed to significantly lower funding costs. If deposit growth stalls the bank could face higher reliance on more expensive wholesale funding which would pressure net interest margin.
The potential capital relief from the Basel III Endgame proposal remains subject to ongoing review of standardized and ERBA approaches and there is no guarantee that the estimated 9% to 10% risk weighted asset reduction will be achieved. Regulatory delays or changes to the final rules could diminish the expected boost to Common Equity Tier 1 capital. Until the proposal is finalized the bank cannot rely on this additional capital to support aggressive share repurchases or dividend growth. This uncertainty may lead investors to discount the upside from regulatory relief in their valuation models.

Persistent pricing pressure in commercial real estate lending is limiting the banks ability to widen spreads on new originations and may compress net interest margin over time. Management acknowledged that competition for CRE loans has intensified as other lenders vie for market share in the same geographic footprint. While the CRE portfolio remains granular with low nonaccruals and delinquencies the pricing environment could hinder future loan yield improvement. If the pressure persists the bank may need to rely more heavily on fee income or loan growth in other segments to maintain NII expansion.
The Chief Credit Officer noted a slight increase this quarter in criticized and classified loans within the commercial and industrial portfolio even while overall credit quality metrics remain strong. This uptick suggests that certain sectors such as restaurants and consumer facing businesses are experiencing rising expense pressures that could affect borrower ability to repay. If these trends continue the bank may see higher provisioning needs and a rise in net charge offs that would erode profitability. Monitoring of these segments is therefore critical to avoid unexpected credit deterioration.
A meaningful portion of the banks non interest income growth came from the sale of residential mortgage loans held for sale which introduces volatility tied to housing market activity and refinancing waves. Should mortgage rates rise or housing demand weaken the volume of loans available for sale could decline reducing this fee income stream. Over reliance on this transactional revenue makes earnings less predictable compared to stable interest income or advisory fees. The bank would need to develop other non interest sources to offset any potential slowdown in mortgage loan sales.
The banks strategy to grow low cost deposits depends heavily on the success of new products such as the gold account and business beyond and on convincing customers to move off balance sheet funds onto the bank's books. Adoption of these products may be slower than anticipated especially if competitors offer similar or more attractive features. Additionally the migration of off balance sheet deposits is contingent on client decisions and may not materialize at the pace needed to significantly lower funding costs. If deposit growth stalls the bank could face higher reliance on more expensive wholesale funding which would pressure net interest margin.
The potential capital relief from the Basel III Endgame proposal remains subject to ongoing review of standardized and ERBA approaches and there is no guarantee that the estimated 9% to 10% risk weighted asset reduction will be achieved. Regulatory delays or changes to the final rules could diminish the expected boost to Common Equity Tier 1 capital. Until the proposal is finalized the bank cannot rely on this additional capital to support aggressive share repurchases or dividend growth. This uncertainty may lead investors to discount the upside from regulatory relief in their valuation models.

Peer Comparison

Companies in the Banks - Regional

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	KB	KB Financial Group Inc.	42,090.38 Bn	0.00 Bn	0.01 Mn	56.66 Bn
2	SHG	Shinhan Financial Group Co Ltd	33,919.15 Bn	0.00 Bn	0.00 Mn	40.46 Bn
3	BCH	Bank Of Chile	4,123.52 Bn	368.17 Bn	1.57 Mn	0.00 Bn
4	LYG	Lloyds Banking Group plc	360.83 Bn	0.00 Bn	0.00 Mn	42.37 Bn
5	FCAP	First Capital Inc	204.17 Bn	0.00 Bn	0.03 Mn	-
6	LARK	Landmark Bancorp Inc	187.97 Bn	0.00 Bn	0.00 Mn	0.00 Bn
7	NWG	NatWest Group plc	144.82 Bn	0.00 Bn	0.00 Mn	94.66 Bn
8	PNC	Pnc Financial Services Group, Inc.	101.80 Bn	0.00 Bn	0.00 Mn	21.42 Bn

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