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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's recent performance was positively driven by its Q3 earnings beat, with net earnings applicable to common shareholders of $221 million, or $1.48 per diluted common share. The company's decentralized model drives strong credit quality, with excellent underwriting and low net charge-offs. Additionally, Elizabeth Park Capital Advisors Ltd. raised its stake in Zions Bancorporation by 28.3% in Q2. The company's net interest income and fee income also lifted profits, contributing to its strong performance. Its solid financials and improving net interest margins support its growth.

1.c. Company Highlights

2. Zions Bancorp's Q4 Earnings Beat Expectations with Strong NIM Expansion

Zions Bancorp reported fourth-quarter earnings of $262 million, up 19% from the prior quarter and 31% from a year ago, with diluted earnings per share (EPS) coming in at $1.76, exceeding analyst estimates of $1.57. The actual EPS was $1.75. The net interest margin (NIM) expanded for the eighth consecutive quarter to 3.31%, driven by an improved funding mix as customer deposit initiatives reduced reliance on short-term borrowings. Customer deposits grew at a healthy 9% annualized pace. Adjusted pre-provision net revenue (PPNR) was $331 million, down 6% sequentially and up 6% year-over-year.

Publication Date: Jan -22

📋 Highlights
  • Q4 Earnings Surge: Earnings jumped to $262M (+19% QoQ, +31% YoY), with diluted EPS rising to $1.76 from $1.48 and $1.34.
  • Net Interest Margin Expansion: Hit 3.31% for the eighth consecutive quarter, driven by reduced reliance on short-term borrowings and improved deposit mix.
  • Customer Deposit Growth: Deposits grew 9% annually, with a 2.3% quarter-on-quarter increase, while deposit cost fell 11 bps to 1.56%.
  • 2025 Full-Year Progress: Earnings rose 21%, net interest margin expanded 21 bps, and tangible book value per share grew 21% for the third straight year.

Financial Performance and Outlook

For the full year 2025, earnings grew 21% and NIM expanded by 21 basis points. The tangible book value per share increased 21% this year, the third straight year of growth greater than 20%. The company expects a moderately increasing net interest income for the full year of 2026, supported by favorable earning asset and interest-bearing liability remix, in addition to growth in loans and deposits. The outlook for customer-related fee income for the full year 2026 is moderately increasing relative to the full year 2025, led by capital markets, followed by loan-related fees.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 1.26, which is close to its Price-to-Book Ratio, the stock seems reasonably valued. The Dividend Yield stands at 2.86%, indicating an attractive return for income-seeking investors. Analysts estimate next year's revenue growth at 4.5%, which is slightly higher than the current P/S Ratio of 1.84, suggesting that the stock may be undervalued given its growth prospects.

Loan Growth and NIM Expectations

Loan growth is expected to be moderate, with a focus on small business lending, particularly in the areas of C&I and owner-occupied. The company has hired new bankers, particularly in California, and is investing in training and marketing dollars to drive growth. The net interest margin target of 3.50% is still achievable, but the timing is uncertain, largely dependent on rate movements and the new Fed Chair.

Capital Management and M&A Stance

The company expects to start accelerating capital returns, likely in the second half of the year, but not in the next quarter. The CET1 ratio has increased, and the company is getting closer to a point where it can consider increasing capital returns. Zions Bancorporation is open to buybacks in the near term and has made strides in improving capital levels. The M&A stance is that they are not looking for deals but are open to opportunities that make sense financially and culturally.

3. NewsRoom

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ZIONS BANCORPORATION RECEIVES 15 COALITION GREENWICH BEST BANK AWARDS FOR 2026

Feb -20

Source: prnewswire.com

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Warner Bros. Discovery Inc: A Key Exit in HOTCHKIS & WILEY's Latest 13F Filing

Feb -17

Source: gurufocus.com

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Caprock Group LLC Takes Position in Zions Bancorporation, N.A. $ZION

Feb -14

Source: defenseworld.net

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Zions Bancorporation, N.A. (NASDAQ:ZION) EVP Sells $424,958.40 in Stock

Feb -12

Source: defenseworld.net

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Here Are Monday’s Top Wall Street Analyst Research Calls: Autozone, Doximity, Li Auto, Oracle, Robinhood Markets, Roblox, SoFi Technolgy, Terawulf and More

Feb -09

Source: 247wallst.com

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Insider Selling: Zions Bancorporation, N.A. (NASDAQ:ZION) President Sells $1,772,127.00 in Stock

Feb -06

Source: defenseworld.net

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Reviewing Zions Bancorporation, N.A. (NASDAQ:ZION) and East West Bancorp (NASDAQ:EWBC)

Feb -05

Source: defenseworld.net

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ZIONS BANCORPORATION ANNOUNCES PRICING OF SENIOR NOTES

Feb -04

Source: prnewswire.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
Hancock Whitney

A-Score: 6.3/10

Value: 6.0

Growth: 5.9

Quality: 7.2

Yield: 6.0

Momentum: 5.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Webster

A-Score: 6.2/10

Value: 6.2

Growth: 6.3

Quality: 7.5

Yield: 6.0

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
FNB

A-Score: 6.0/10

Value: 5.4

Growth: 5.3

Quality: 5.4

Yield: 7.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Zions Bank

A-Score: 5.9/10

Value: 7.0

Growth: 6.9

Quality: 6.2

Yield: 6.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Comerica

A-Score: 5.8/10

Value: 4.3

Growth: 4.6

Quality: 6.2

Yield: 7.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Key

A-Score: 5.5/10

Value: 5.4

Growth: 2.7

Quality: 5.2

Yield: 8.0

Momentum: 5.0

Volatility: 7.0

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

62.5$

Current Price

62.5$

Potential

-0.00%

Expected Cash-Flows