Zions' third-quarter EPS rises 20% to $1.78 as charge-offs nearly vanish

Cleaner credit drove a sharp profit gain at Zions Bancorporation. The Salt Lake City-based bank said Monday third-quarter net earnings rose to $262 million, or $1.78 a diluted share, from $221 million, or $1.48, a year earlier.

That was down from $452 million, or $3.05 a share, in the second quarter, according to its earnings release filed with an 8-K.

"The higher earnings were primarily a reflection of improved credit quality," Chairman and CEO Harris Simmons said, noting net loan charge-offs of $3 million compared with $56 million a year ago.

Credit improves

The annualized net charge-off ratio fell to 0.02% from 0.37%, and the provision for credit losses swung to an $8 million benefit from a $49 million expense. Classified loans dropped to $2.1 billion, or 3.40% of loans, from $2.4 billion, and nonperforming assets eased to $315 million.

Margin and growth

Net interest income rose 2% to $684 million, though the net interest margin narrowed to 3.23% from 3.28%. Customer-related noninterest income rose 18% to $192 million, while noninterest expense climbed 5% to $553 million.

Loans grew 4% from a year earlier to $62.5 billion, but Simmons said faster payoffs and a competitive market left loan growth flat versus the second quarter. Customer deposits grew to $74.5 billion. He said the bank's "moderately asset-sensitive balance sheet" should produce stronger net interest income if rates rise.

Capital

The estimated common equity tier 1 ratio rose to 11.8% from 11.3%, and tangible book value per share climbed 13% to $43.50. Zions repurchased $75 million of stock and paid $71 million in common dividends during the quarter.

By the numbers

• Diluted EPS: $1.78, vs. $1.48
• Net earnings: $262 million
• Net charge-offs: $3 million, vs. $56 million
• Net interest income: $684 million, up 2%
• Net interest margin: 3.23%
• Estimated CET1 ratio: 11.8%

Sources

1. Zions Bancorporation, N.A., Form 8-K with Exhibit 99.1 earnings release for the third quarter of 2026, filed Oct. 19, 2026, accession 0000109380-26-000125

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