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1. Company Snapshot

1.a. Company Description

Zions Bancorporation, National Association provides various banking and related services primarily in the states of Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming.The company offers corporate banking services; commercial banking, including a focus on small- and medium-sized businesses; commercial real estate banking services; municipal and public finance services; retail banking, including residential mortgages; trust services; wealth management and private client banking services; and capital markets products and services.As of December 31, 2020, it operated 422 branches, which included 273 owned and 149 leased.


The company was formerly known as ZB, National Association and changed its name to Zions Bancorporation, National Association in September 2018.Zions Bancorporation, National Association was founded in 1873 and is headquartered in Salt Lake City, Utah.

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1.b. Last Insights on ZION

Zions Bancorporation faced challenges due to a $50 million write-off tied to fraudulent loans, sparking concerns about credit quality. The company's Q3 earnings revealed a hit from deteriorating credit, but it reported better-than-expected results, with a net charge-off ratio below the FDIC average. A securities fraud investigation was announced, adding uncertainty. However, the company saw a rise in net interest and fee income, beating estimates. Its decentralized model drives strong credit quality, with excellent underwriting and low net charge-offs.

1.c. Company Highlights

2. Zions Bancorp's Q3 2025 Earnings: A Resilient Performance

Zions Bancorp reported a robust financial performance in the third quarter of 2025, with diluted earnings per share (EPS) of $1.54, surpassing estimates of $1.19. The net interest margin (NIM) expanded by 11 basis points to 3.28%, driven by a combination of loan and deposit growth. Pre-provision net revenue (PPNR) came in at $352 million, reflecting an 11% improvement compared to the prior quarter and an 18% increase versus the prior year period. The company's adjusted expenses declined $1 million, resulting in an improved efficiency ratio of 59.6%.

Publication Date: Oct -21

📋 Highlights
  • Net Interest Margin Expansion:: NIM increased 11 bps to 3.28%, driven by higher interest income and lower funding costs.
  • Efficiency Ratio Improvement:: Adjusted expenses fell $1M while fees rose $10M, reducing the efficiency ratio to 59.6%.
  • Loan and Deposit Growth:: Average loans grew 2.1% annualized, and customer deposits rose 3.1% annualized.
  • Credit Loss Reserves Stability:: ACL remained at 1.2% of loans, with loan loss coverage at 213% of nonaccruals.
  • Capital Strength:: Common Equity Tier 1 ratio held at 11.3%, with guidance for NIM to reach 3.50% over time.

Loan and Deposit Growth

The company's average loans and customer deposits increased by an annualized 2.1% and 3.1%, respectively. Loan growth is expected to be driven by commercial loans, with a slightly raised guidance. The company saw some runoff in Commercial and Industrial (C&I) lending but has a strong pipeline and is working to restore growth. As Harris Simmons, CEO of Zion Bancorporation, noted, "We expect loan growth to return to a low to mid-single-digit rate over the next year, driven more by C&I loans than CRE."

Asset Quality and Credit Loss Provision

The company recorded a $49 million provision for credit loss and net charge-offs of $56 million, or 37 basis points of loans on an annualized basis. The allowance for credit losses as a percentage of loans remained stable at 1.2%. According to Derek Steward, "Our reserve level is based on economic scenarios, modeling, and judgment. It's stayed stable for several quarters, but may change depending on the economy."

Capital and Valuation

The Common Equity Tier 1 ratio was 11.3%, and the company expects to continue producing positive operating leverage as revenue growth outpaces noninterest expense growth. With a current Price-to-Tangible Book Value (P/TBV) of around 1.13, the stock appears reasonably valued. The Net Interest Margin (NIM) is expected to continue expanding, with guidance for a moderately increasing net interest income in the third quarter of 2026. Analysts estimate next year's revenue growth at 4.5%, which is slightly higher than the current Dividend Yield of 3.3%.

Outlook and Guidance

The company expects moderate operating leverage for next year, with a positive outlook but no specific target provided. They anticipate a net interest margin (NIM) of around 3.50% over time. The company's implied net interest income (NII) sensitivity suggests minimal improvement, but management notes this is due to various assumptions, including a down rate environment and conservative reinvestment assumptions.

3. NewsRoom

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Zions Bancorporation Investor News: If You Have Suffered Losses in Zions Bancorporation, N.A. (NASDAQ: ZION, ZIONP), You Are Encouraged to Contact The Rosen Law Firm About Your Rights

Dec -04

Source: globenewswire.com

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ZIONS BANCORPORATION ANNOUNCES 2026 EARNINGS RELEASE DATES

Dec -03

Source: prnewswire.com

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Rosen Law Firm Encourages Zions Bancorporation, N.A. Investors to Inquire About Securities Class Action Investigation - ZION, ZIONP

Dec -02

Source: prnewswire.com

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ROSEN, LEADING INVESTOR COUNSEL, Encourages Zions Bancorporation, N.A. Investors to Inquire About Securities Class Action Investigation - ZION, ZIONP

Dec -01

Source: newsfilecorp.com

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Zions Bancorporation Investor News: If You Have Suffered Losses in Zions Bancorporation, N.A. (NASDAQ: ZION, ZIONP), You Are Encouraged to Contact The Rosen Law Firm About Your Rights

Nov -30

Source: globenewswire.com

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ROSEN, NATIONAL INVESTOR COUNSEL, Encourages Zions Bancorporation, N.A. Investors to Inquire About Securities Class Action Investigation - ZION, ZIONP

Nov -29

Source: newsfilecorp.com

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ROSEN, A LEADING LAW FIRM, Encourages Zions Bancorporation, N.A. Investors to Inquire About Securities Class Action Investigation - ZION, ZIONP

Nov -28

Source: newsfilecorp.com

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Zions Bancorporation Investor News: If You Have Suffered Losses in Zions Bancorporation, N.A. (NASDAQ: ZION, ZIONP), You Are Encouraged to Contact The Rosen Law Firm About Your Rights

Nov -27

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.25%)

6. Segments

Zions Bank

Expected Growth: 5%

Zions Bank's 5% growth is driven by its strong presence in the Western US, diversified revenue streams, and solid credit quality. The bank's focus on commercial and industrial lending, as well as its growing wealth management business, contribute to its growth. Additionally, its investments in digital banking and technology enhance customer experience and improve operational efficiency.

California Bank and Trust

Expected Growth: 4%

California Bank and Trust's 4% growth is driven by strategic expansion into California's thriving markets, diversification of loan portfolios, and investments in digital banking platforms. Additionally, Zions Bancorporation's strong brand reputation and risk management practices have contributed to the bank's steady growth.

Amegy

Expected Growth: 4%

Amegy's 4% growth is driven by its strong presence in Texas, strategic expansion into new markets, and a diversified loan portfolio. Additionally, its parent company Zions Bancorporation's digital transformation initiatives and cost-saving measures have contributed to its growth. Furthermore, Amegy's focus on commercial and industrial lending, as well as its robust risk management practices, have enabled it to maintain a stable and growing balance sheet.

National Bank of Arizona

Expected Growth: 4%

National Bank of Arizona's 4% growth is driven by its strategic expansion into the Phoenix market, increased commercial lending, and a strong deposit growth rate of 5%. Additionally, its affiliation with Zions Bancorporation provides access to a larger capital base, enabling investments in digital banking and talent acquisition, further fueling growth.

Nevada State Bank

Expected Growth: 4%

Nevada State Bank's 4% growth is driven by a strong economy in Nevada, fueled by tourism and entertainment industries. Additionally, the bank's focus on commercial lending, particularly in the small business and middle market segments, has contributed to its growth. Furthermore, the bank's digital transformation efforts and investment in technology have enhanced customer experience, attracting new customers and increasing deposits.

Vectra

Expected Growth: 4%

Vectra's 4% growth is driven by increasing demand for digital banking solutions, strategic partnerships, and expansion into new markets. Additionally, investments in artificial intelligence and machine learning have enhanced customer experience, leading to increased adoption and retention rates. Furthermore, the rise of online lending and cash management services has contributed to Vectra's growth.

Other

Expected Growth: 3%

Zions Bancorporation's 'Other' segment growth is driven by increasing demand for mortgage banking services, expansion of its digital banking platform, and strategic acquisitions. Additionally, the segment benefits from a diversified revenue stream, including trust and investment services, and a strong balance sheet with ample liquidity.

The Commerce Bank of Washington

Expected Growth: 4%

The Commerce Bank of Washington's 4% growth is driven by its strategic expansion into the Pacific Northwest, increased commercial lending, and a strong deposit growth. Additionally, its parent company Zions Bancorporation's digital transformation efforts and cost savings initiatives have also contributed to its growth.

7. Detailed Products

Personal Banking

Zions Bancorporation offers a range of personal banking services, including checking and savings accounts, credit cards, loans, and investment products.

Business Banking

Zions provides business banking services, including commercial loans, cash management, and treasury management solutions, to help businesses manage their finances and grow.

Mortgage Lending

Zions offers a range of mortgage lending products, including conventional, FHA, VA, and jumbo loans, to help individuals and families purchase or refinance their homes.

Wealth Management

Zions' wealth management services provide investment management, financial planning, and trust services to help individuals and families achieve their long-term financial goals.

Treasury Management

Zions' treasury management services provide cash management, risk management, and trade finance solutions to help businesses optimize their financial performance.

Credit Cards

Zions offers a range of credit card products, including cash back, rewards, and low-interest credit cards, to help individuals and businesses manage their expenses.

8. Zions Bancorporation, National Association's Porter Forces

Forces Ranking

Threat Of Substitutes

Zions Bancorporation, National Association operates in a highly competitive industry, and customers have various alternatives for their banking needs. However, the company's strong brand reputation and diverse product offerings mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

Zions Bancorporation, National Association has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's diverse product offerings and strong brand reputation reduce the likelihood of customers switching to competitors.

Bargaining Power Of Suppliers

Zions Bancorporation, National Association has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position and long-term relationships with suppliers also mitigate the bargaining power of suppliers.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and significant capital requirements. Additionally, Zions Bancorporation, National Association's strong brand reputation and established customer base make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Zions Bancorporation, National Association faces intense competition from other regional banks, national banks, and fintech companies, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 45.01%
Debt Cost 7.61%
Equity Weight 54.99%
Equity Cost 9.53%
WACC 8.67%
Leverage 81.86%

11. Quality Control: Zions Bancorporation, National Association passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Webster

A-Score: 6.8/10

Value: 7.0

Growth: 6.4

Quality: 7.1

Yield: 6.0

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Hancock Whitney

A-Score: 6.7/10

Value: 6.6

Growth: 5.9

Quality: 7.8

Yield: 6.0

Momentum: 7.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
FNB

A-Score: 6.4/10

Value: 5.9

Growth: 5.3

Quality: 5.4

Yield: 7.0

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Zions Bank

A-Score: 6.3/10

Value: 6.7

Growth: 7.0

Quality: 5.8

Yield: 6.0

Momentum: 7.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Comerica

A-Score: 6.1/10

Value: 5.8

Growth: 4.6

Quality: 5.6

Yield: 8.0

Momentum: 7.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Key

A-Score: 5.6/10

Value: 5.2

Growth: 2.7

Quality: 5.2

Yield: 8.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

55.45$

Current Price

55.45$

Potential

-0.00%

Expected Cash-Flows