Zions Bancorporation, National Association /Ut/ (NASDAQ: ZION)

$62.12 ▲ +0.30 (+0.49%)

As of May 22, 2026 04:00 PM

Sector: Financial Services Industry: Banks - Regional CIK: 0000109380

Market Cap 9.13 Bn

P/E 9.66

P/S 2.65

Div. Yield 0.03

ROIC (Qtr) 0.00

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...

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

Zions’ net interest margin has been climbing for eight straight quarters, now sitting at 3.31 percent, and the bank has skillfully trimmed its funding costs by widening its deposit base and reducing short‑term borrowings. The combination of a 9 % annualized deposit growth and a 2.3 % rise in average balances provides a durable low‑cost foundation that will cushion any future rate cuts. With the bank’s capital ratio climbing to an 11.5 % CET1 level and tangible book value per share up 21 % year over year, management signals that it is “nearing the point” to accelerate capital distributions, implying upside for shareholders once capital adequacy stabilizes. The strategic emphasis on small‑business banking, especially the nearly 53 % jump in SBA 7(a) originations, taps a high‑margin segment that has historically delivered resilient revenue streams and strong fee growth. Finally, the bank’s recent rebound in commercial real‑estate loan performance—evidenced by a drop in non‑accruals and a modest decline in classified balances—suggests that the CRE environment is improving, positioning the bank to capture additional growth without materially increasing credit risk.
A key catalyst under‑the‑radar is the bank’s robust fee‑income engine, which has climbed to a record $175 million in adjusted customer‑related non‑interest income. Management highlights that this fee growth is now spread across the entire product suite, not just capital‑market activities, implying that the bank can sustain higher fee yields even if market‑based earnings pressure intensifies. The bank’s focus on launching new bundled product offerings and investing heavily in marketing and technology has already begun to translate into tangible deposit expansion, with non‑interest‑bearing deposits growing 6 % quarter‑over‑quarter and the bank’s new consumer “gold” accounts generating a large, high‑balance customer base. These initiatives are backed by a disciplined, low‑cost technology spend that is not reactive to short‑term competitive threats but designed to enable long‑term sustainable growth, suggesting that future earnings expansion will not be a short‑lived surge but a structural shift in the bank’s revenue mix. Moreover, the bank’s capital‑market fees have surged 25 % year over year, and management expects to be at the top end of the guide for 2026, reinforcing the view that fee income will be a reliable source of operating leverage moving forward.
The bank’s asset‑mix management continues to be a hidden driver of performance. By carefully balancing the maturity profile of its securities portfolio (estimated duration 3.8 years) with a strategic re‑investment into earning assets, Zions has been able to offset any decline in fixed‑rate asset repricing that could erode net interest income. The management’s discussion on “remix” indicates that the bank can pull additional liquidity from its securities to fund loan growth or pay down wholesale funding, thereby maintaining a favourable asset‑liability mix even under a rate‑cut cycle. This active management of duration and liquidity positions the bank to better weather the next wave of rate volatility, giving investors confidence that earnings will be insulated from a potential steep rise in funding costs. Additionally, the bank’s focus on growth in the California, Texas, and Pacific Northwest markets—regions with historically strong small‑business activity—provides geographic diversification that protects the loan portfolio against regional downturns, enhancing credit quality resilience. The cumulative effect of these tactics is a bank that can maintain or even expand earnings as it continues to capture higher‑quality deposits and loans without compromising balance‑sheet strength.
Zions’ disciplined cost management, underscored by a 5 % increase in adjusted non‑interest expense that is offset by strategic investments in marketing, technology, and legal normalization, reflects a forward‑looking operating model that prioritises profitability. The bank has highlighted $40 million in embedded cost‑savings initiatives driven by AI, outsourcing, and process optimization, which help neutralise the impact of growth‑related spend and keep expense ratios stable. By maintaining a tight expense trajectory while simultaneously driving revenue growth, the bank demonstrates the ability to create operating leverage of 100‑150 basis points for the full year of 2026, an improvement that has been a consistent theme in prior earnings releases. This model supports the bank’s long‑term objective of increasing capital distributions, as it implies that earnings growth will translate into higher retained earnings and an upward trajectory for tangible book value. Consequently, the market may undervalue the bank’s potential for incremental shareholder returns and continued balance‑sheet expansion.
The bank’s capital distribution outlook is further strengthened by its positive AOCI trajectory, driven by unrealised gains on its securities portfolio. Management has repeatedly emphasized that the AOCI component is a predictable, non‑operational buffer that will continue to accrete, thereby elevating the bank’s tangible book value and reinforcing its capital buffer. With the regulatory capital ratio already in the upper range of peer comparables and the bank expressing confidence in its ability to accelerate buybacks in the second half of 2026, investors should view the upcoming capital returns as a signal of management’s conviction in the bank’s risk‑adjusted growth profile. The combination of a solid CET1 ratio, a healthy tangible book value, and an expanding capital distribution plan paints a bullish picture of value creation that the market may not yet fully appreciate. These elements collectively suggest that Zions is well positioned to deliver enhanced shareholder value through both organic earnings growth and capital return initiatives.

Zions’ net interest margin has been climbing for eight straight quarters, now sitting at 3.31 percent, and the bank has skillfully trimmed its funding costs by widening its deposit base and reducing short‑term borrowings. The combination of a 9 % annualized deposit growth and a 2.3 % rise in average balances provides a durable low‑cost foundation that will cushion any future rate cuts. With the bank’s capital ratio climbing to an 11.5 % CET1 level and tangible book value per share up 21 % year over year, management signals that it is “nearing the point” to accelerate capital distributions, implying upside for shareholders once capital adequacy stabilizes. The strategic emphasis on small‑business banking, especially the nearly 53 % jump in SBA 7(a) originations, taps a high‑margin segment that has historically delivered resilient revenue streams and strong fee growth. Finally, the bank’s recent rebound in commercial real‑estate loan performance—evidenced by a drop in non‑accruals and a modest decline in classified balances—suggests that the CRE environment is improving, positioning the bank to capture additional growth without materially increasing credit risk.
A key catalyst under‑the‑radar is the bank’s robust fee‑income engine, which has climbed to a record $175 million in adjusted customer‑related non‑interest income. Management highlights that this fee growth is now spread across the entire product suite, not just capital‑market activities, implying that the bank can sustain higher fee yields even if market‑based earnings pressure intensifies. The bank’s focus on launching new bundled product offerings and investing heavily in marketing and technology has already begun to translate into tangible deposit expansion, with non‑interest‑bearing deposits growing 6 % quarter‑over‑quarter and the bank’s new consumer “gold” accounts generating a large, high‑balance customer base. These initiatives are backed by a disciplined, low‑cost technology spend that is not reactive to short‑term competitive threats but designed to enable long‑term sustainable growth, suggesting that future earnings expansion will not be a short‑lived surge but a structural shift in the bank’s revenue mix. Moreover, the bank’s capital‑market fees have surged 25 % year over year, and management expects to be at the top end of the guide for 2026, reinforcing the view that fee income will be a reliable source of operating leverage moving forward.
The bank’s asset‑mix management continues to be a hidden driver of performance. By carefully balancing the maturity profile of its securities portfolio (estimated duration 3.8 years) with a strategic re‑investment into earning assets, Zions has been able to offset any decline in fixed‑rate asset repricing that could erode net interest income. The management’s discussion on “remix” indicates that the bank can pull additional liquidity from its securities to fund loan growth or pay down wholesale funding, thereby maintaining a favourable asset‑liability mix even under a rate‑cut cycle. This active management of duration and liquidity positions the bank to better weather the next wave of rate volatility, giving investors confidence that earnings will be insulated from a potential steep rise in funding costs. Additionally, the bank’s focus on growth in the California, Texas, and Pacific Northwest markets—regions with historically strong small‑business activity—provides geographic diversification that protects the loan portfolio against regional downturns, enhancing credit quality resilience. The cumulative effect of these tactics is a bank that can maintain or even expand earnings as it continues to capture higher‑quality deposits and loans without compromising balance‑sheet strength.
Zions’ disciplined cost management, underscored by a 5 % increase in adjusted non‑interest expense that is offset by strategic investments in marketing, technology, and legal normalization, reflects a forward‑looking operating model that prioritises profitability. The bank has highlighted $40 million in embedded cost‑savings initiatives driven by AI, outsourcing, and process optimization, which help neutralise the impact of growth‑related spend and keep expense ratios stable. By maintaining a tight expense trajectory while simultaneously driving revenue growth, the bank demonstrates the ability to create operating leverage of 100‑150 basis points for the full year of 2026, an improvement that has been a consistent theme in prior earnings releases. This model supports the bank’s long‑term objective of increasing capital distributions, as it implies that earnings growth will translate into higher retained earnings and an upward trajectory for tangible book value. Consequently, the market may undervalue the bank’s potential for incremental shareholder returns and continued balance‑sheet expansion.
The bank’s capital distribution outlook is further strengthened by its positive AOCI trajectory, driven by unrealised gains on its securities portfolio. Management has repeatedly emphasized that the AOCI component is a predictable, non‑operational buffer that will continue to accrete, thereby elevating the bank’s tangible book value and reinforcing its capital buffer. With the regulatory capital ratio already in the upper range of peer comparables and the bank expressing confidence in its ability to accelerate buybacks in the second half of 2026, investors should view the upcoming capital returns as a signal of management’s conviction in the bank’s risk‑adjusted growth profile. The combination of a solid CET1 ratio, a healthy tangible book value, and an expanding capital distribution plan paints a bullish picture of value creation that the market may not yet fully appreciate. These elements collectively suggest that Zions is well positioned to deliver enhanced shareholder value through both organic earnings growth and capital return initiatives.

Bear case

While Zions has reported an impressive NIM expansion, the bank remains highly sensitive to the shape of the yield curve, as highlighted during the call when management noted that earnings asset yields declined 15 basis points following the last rate cut. The bank’s asset‑liability mix, with 60 % of term deposits set to reprice, exposes it to potential margin compression if the Fed pauses or raises rates, a scenario that could reverse the current upside in net interest income. The management’s reliance on a projected two 25‑basis‑point cuts in 2026 is an assumption that may not materialise, and any deviation could erode the bank’s NIM trajectory, raising concerns that the bank’s earnings growth might be over‑optimistic in a more hawkish monetary environment. Moreover, the bank’s deposit growth has been largely driven by new, smaller consumer accounts, which, while adding volume, are typically less profitable and may erode overall deposit profitability if the interest‑bearing deposit mix does not improve. This rate‑sensitivity risk, combined with the potential for a steeper yield curve, suggests that the bank’s reported margin gains could be fragile.
The bank’s credit quality narrative, while seemingly strong, is punctuated by subtle signs of stress in its CRE portfolio. Management reported a 2 % sequential decline in classified balances, driven largely by a $92 million rise in C&I classified loans, indicating that some commercial borrowers are already on the brink of non‑performing status. While the non‑accruals and delinquencies remain low, the bank’s CRE loan portfolio still represents 22 % of total loans, a concentration that heightens sensitivity to regional economic downturns. The Q&A also revealed that the bank’s CRE rebound has been “partial” and that the CRE growth will be “less than” overall portfolio growth, suggesting that the CRE sector may remain a drag on the bank’s credit profile. This concentration risk is further amplified by the bank’s strategic emphasis on small‑business lending, which inherently carries higher default risk during economic contractions. Investors should therefore scrutinise the bank’s credit loss provisioning strategy and the potential for future charge‑offs that could erode the bank’s profitability.
Management’s comments on marketing and technology spend appear evasive and lack quantifiable impact metrics. While the bank touts increased marketing dollars, it repeatedly attributes this to a “revamp of products” rather than a direct response to competitive pressures, creating ambiguity around the effectiveness of these expenditures. The call also revealed that the bank has not yet fully monetised the potential of its AI initiatives; it describes AI usage as still in an “exploratory phase” with a handful of projects rather than a mature, revenue‑driving function. This lack of clarity raises concerns that the bank’s expense growth may not be fully offset by incremental revenue, especially as it continues to invest in technology and legal normalization. Consequently, the bank’s operating leverage assumptions could be overly optimistic if the cost‑to‑revenue ratio deteriorates, undermining the bank’s projected earnings growth.
The bank’s M&A stance is ambiguous and potentially a hidden risk. Management explicitly stated it has no “stance” on deals and will only consider transactions that meet strict financial, cultural, and regulatory criteria. This cautious approach may leave the bank vulnerable to opportunistic acquisitions by competitors, especially as the bank’s capital buffer expands and it becomes an attractive target for consolidation. Moreover, the bank’s focus on organic growth, coupled with its reluctance to pursue sizeable acquisitions, may limit its ability to scale quickly in a market where larger banks are aggressively expanding their market share. Investors should be wary that the bank’s conservative M&A posture could restrict growth opportunities, especially if the bank cannot keep pace with peers that are leveraging acquisitions to capture high‑margin business.
Zions’ capital distribution plan, while attractive, is contingent on regulatory approval and board endorsement, factors that could delay or dampen shareholder returns. Management acknowledged that “no wholesale change” is imminent in the treatment of AOCI, but the reliance on AOCI accretion to strengthen tangible book value is a non‑operational lever that may not materialise in the same way if future accounting standards or regulatory frameworks adjust. Additionally, the bank’s capital distribution plans are contingent on maintaining or improving its CET1 ratio, which could be pressured by a slower loan growth trajectory, increased credit losses, or higher funding costs. Any adverse movement in these variables could postpone or reduce the expected buybacks, limiting the upside for shareholders. Thus, while capital returns are a bullish narrative, the inherent uncertainty surrounding capital adequacy and regulatory approvals introduces a noteworthy risk that may blunt the bank’s value proposition.

While Zions has reported an impressive NIM expansion, the bank remains highly sensitive to the shape of the yield curve, as highlighted during the call when management noted that earnings asset yields declined 15 basis points following the last rate cut. The bank’s asset‑liability mix, with 60 % of term deposits set to reprice, exposes it to potential margin compression if the Fed pauses or raises rates, a scenario that could reverse the current upside in net interest income. The management’s reliance on a projected two 25‑basis‑point cuts in 2026 is an assumption that may not materialise, and any deviation could erode the bank’s NIM trajectory, raising concerns that the bank’s earnings growth might be over‑optimistic in a more hawkish monetary environment. Moreover, the bank’s deposit growth has been largely driven by new, smaller consumer accounts, which, while adding volume, are typically less profitable and may erode overall deposit profitability if the interest‑bearing deposit mix does not improve. This rate‑sensitivity risk, combined with the potential for a steeper yield curve, suggests that the bank’s reported margin gains could be fragile.
The bank’s credit quality narrative, while seemingly strong, is punctuated by subtle signs of stress in its CRE portfolio. Management reported a 2 % sequential decline in classified balances, driven largely by a $92 million rise in C&I classified loans, indicating that some commercial borrowers are already on the brink of non‑performing status. While the non‑accruals and delinquencies remain low, the bank’s CRE loan portfolio still represents 22 % of total loans, a concentration that heightens sensitivity to regional economic downturns. The Q&A also revealed that the bank’s CRE rebound has been “partial” and that the CRE growth will be “less than” overall portfolio growth, suggesting that the CRE sector may remain a drag on the bank’s credit profile. This concentration risk is further amplified by the bank’s strategic emphasis on small‑business lending, which inherently carries higher default risk during economic contractions. Investors should therefore scrutinise the bank’s credit loss provisioning strategy and the potential for future charge‑offs that could erode the bank’s profitability.
Management’s comments on marketing and technology spend appear evasive and lack quantifiable impact metrics. While the bank touts increased marketing dollars, it repeatedly attributes this to a “revamp of products” rather than a direct response to competitive pressures, creating ambiguity around the effectiveness of these expenditures. The call also revealed that the bank has not yet fully monetised the potential of its AI initiatives; it describes AI usage as still in an “exploratory phase” with a handful of projects rather than a mature, revenue‑driving function. This lack of clarity raises concerns that the bank’s expense growth may not be fully offset by incremental revenue, especially as it continues to invest in technology and legal normalization. Consequently, the bank’s operating leverage assumptions could be overly optimistic if the cost‑to‑revenue ratio deteriorates, undermining the bank’s projected earnings growth.
The bank’s M&A stance is ambiguous and potentially a hidden risk. Management explicitly stated it has no “stance” on deals and will only consider transactions that meet strict financial, cultural, and regulatory criteria. This cautious approach may leave the bank vulnerable to opportunistic acquisitions by competitors, especially as the bank’s capital buffer expands and it becomes an attractive target for consolidation. Moreover, the bank’s focus on organic growth, coupled with its reluctance to pursue sizeable acquisitions, may limit its ability to scale quickly in a market where larger banks are aggressively expanding their market share. Investors should be wary that the bank’s conservative M&A posture could restrict growth opportunities, especially if the bank cannot keep pace with peers that are leveraging acquisitions to capture high‑margin business.
Zions’ capital distribution plan, while attractive, is contingent on regulatory approval and board endorsement, factors that could delay or dampen shareholder returns. Management acknowledged that “no wholesale change” is imminent in the treatment of AOCI, but the reliance on AOCI accretion to strengthen tangible book value is a non‑operational lever that may not materialise in the same way if future accounting standards or regulatory frameworks adjust. Additionally, the bank’s capital distribution plans are contingent on maintaining or improving its CET1 ratio, which could be pressured by a slower loan growth trajectory, increased credit losses, or higher funding costs. Any adverse movement in these variables could postpone or reduce the expected buybacks, limiting the upside for shareholders. Thus, while capital returns are a bullish narrative, the inherent uncertainty surrounding capital adequacy and regulatory approvals introduces a noteworthy risk that may blunt the bank’s value proposition.

Peer comparison

Companies in the Banks - Regional

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	BCH	Bank Of Chile	90,891.20 Bn	47.15 Mn	-	0.00 Bn
2	BBD	Bank Bradesco	6,807.69 Bn	0.00 Mn	-	21.77 Bn
3	LYG	Lloyds Banking Group plc	426.28 Bn	0.00 Mn	16.65	-
4	NWG	NatWest Group plc	184.56 Bn	0.00 Mn	4.63	-
5	FCAP	First Capital Inc	181.18 Bn	0.00 Mn	25,111.90	-
6	LARK	Landmark Bancorp Inc	164.67 Bn	0.00 Mn	2,257.48	0.02 Bn
7	DB	Deutsche Bank Aktiengesellschaft	161.63 Bn	0.00 Mn	5.57	630.72 Bn
8	KB	KB Financial Group Inc.	150.02 Bn	0.00 Mn	-	8.28 Bn

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Zions Bancorporation, National Association /Ut/ (NASDAQ: ZION)

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Investment thesis

Bull case

Bear case

Peer comparison

Research Tools

Developers

Zions Bancorporation, National Association /Ut/ (NASDAQ: ZION)

About

Investment thesis

Bull case

Bear case

Peer comparison

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