Company Reports

Zions Bancorp focuses primarily on small and midsize businesses across its Western US footprint. We think its strategy of building on-the-ground relationships with SMB clients is sound. However, with roughly 80% of revenue coming from net interest income, Zions’ profitability is more sensitive to interest-rate movements and deposit performance than larger regional banks with more diversified fee income.

Zions Bancorp focuses primarily on small and midsize businesses across its Western US footprint. We think its strategy of building on-the-ground relationships with SMB clients is sound. However, with roughly 80% of revenue coming from net interest income, Zions’ profitability is more sensitive to interest-rate movements and deposit performance than larger regional banks with more diversified fee income.

Zions reported slightly underwhelming second-quarter results, with its adjusted earnings per share up 10% excluding noncore items. The bank’s shares traded down by around a low-single-digit percentage in after-hours trading on July 20 following its earnings release.

Zions Bancorp focuses primarily on small and midsize businesses across its Western US footprint. We think its strategy of building on-the-ground relationships with SMB clients is sound. However, with roughly 80% of revenue coming from net interest income, Zions’ profitability is more sensitive to interest-rate movements and deposit performance than larger regional banks with more diversified fee income.

Zions Bancorp focuses primarily on small and midsize businesses across its Western US footprint. We think its strategy of building on-the-ground relationships with SMB clients is sound. However, with roughly 80% of revenue coming from net interest income, Zions’ profitability is more sensitive to interest-rate movements and deposit performance than larger regional banks with more diversified fee income.

Zions reported slightly disappointing first-quarter results, with its net interest margin contracting 4 basis points sequentially. The bank’s shares traded down between 2% to 3% in after-hours trading on April 20 following its earnings release.

The Federal Reserve released its long-awaited proposals for a few key regulatory measures, including adopting the global Basel III endgame standards and revising the surplus capital that global systemically important banks must hold.

Zions Bancorp focuses primarily on small and midsize businesses across its Western US footprint. We think its strategy of building on-the-ground relationships with SMB clients is sound. However, with roughly 80% of revenue coming from net interest income, Zions’ profitability is more sensitive to interest-rate movements and deposit performance than larger regional banks with more diversified fee income.

Shares of US banks traded down by low-to-mid single digits on Feb. 23, mostly due to macro concerns stemming from tariff uncertainty, possible credit losses from an increase in the unemployment rate driven by artificial intelligence disruption, and private credit-related exposure.

Zions reported strong fourth-quarter earnings growth, driven primarily by a 9% year-over-year increase in net interest income. The bank’s 2026 loan growth guidance implies modest improvement relative to prior expectations.

We are transferring coverage of Zions Bancorp to a new analyst. The regional bank has a footprint mostly in the Western United States and focuses on small and midsized commercial clients, with $90 billion in assets as of the end of the third quarter of 2025.

Zions Bancorp focuses primarily on small and midsize businesses across its Western US footprint. We think its strategy of building on-the-ground relationships with SMB clients is sound. However, with roughly 80% of revenue coming from net interest income, Zions’ profitability is more sensitive to interest-rate movements and deposit performance than larger regional banks with more diversified fee income streams.

Zions had good underlying third-quarter results with earnings up 8% year over year. Net charge-offs of $56 million were due to fraud at two loans tied to nondepositary financial institutions. Excluding this, net charge-offs were $6 million, which annualized is just 0.04% of loans.

Zions Bancorporation is one of the smaller regional banks that we cover. It is primarily a commercial bank focused on small to midsize businesses in the western half of the United States, where on-the-ground relationships are key. Although Zions struggled during the financial crisis, it has made meaningful improvements to its credit risk management and operational efficiency. We think the main determinants of the bank’s future success will be the interest-rate environment, the stability of the deposit base, and the ability to maintain and improve operational efficiency.

Zions unexpectedly announced on Oct. 15 that it had identified apparent misrepresentations and contractual defaults by two of its borrowers. Zions will take a provision of $60 million and a charge-off of $50 million related to this in the third quarter. Shares are down 4% in aftermarket trading.

Zions reported second-quarter earnings per share, excluding notable items, of $1.58, up from $1.24 in the first quarter. The firm’s net interest margin increased to 3.17% in the second quarter from 3.10% in the first quarter.

The Federal Reserve, with the support of the Office of the Comptroller of the Currency and the Federal Deposit Insurance, released draft changes to the enhanced supplemental leverage ratio today. The Morningstar US Banks Index rose by 0.6% on the news, while the broader market was flat.

Advancing capabilities in digitization, data analytics, and artificial intelligence are starting to have a profound impact on banks. Physical branches no longer define banking as technology affects not only how banks operate but also how they interact with customers, manage risk, and drive growth.

Zions Bancorporation is one of the smaller regional banks that we cover. It is primarily a commercial bank focused on small to midsize businesses in the western half of the United States, where on-the-ground relationships are key. Although Zions struggled during the financial crisis, it has made meaningful improvements to its credit risk management and operational efficiency. We think the main determinants of the bank’s future success will be the interest-rate environment, the stability of the deposit base, and the ability to maintain and improve operational efficiency.

No-moat-rated Zions Bancorp reported an OK start to the year. As we incorporate the firm’s first-quarter results and outlook, we plan to lower our $62 per share fair value estimate by a single-digit percentage and still view shares as undervalued.