Zions Bancorporation, N.A. (ZION) Financials

Zions Bancorporation (NASDAQ: ZION) shows a mixed but generally stable operating picture in the most recent quarter, with improving earnings versus early 2025, solid liquidity, and healthy deposit growth — but also some pressure on net interest income, rising operating expenses, and a noticeably weaker capital base than a few years ago.

In Q1 2026, Zions reported net income attributable to common shareholders of $232 million, or $1.56 per share. That was down from Q4 2025’s $262 million, but still above Q1 2025’s $169 million, showing year-over-year earnings improvement. Revenue in Q1 2026 was $849 million, slightly below Q4 2025’s $891 million, but above the comparable period last year.

Here are the most important trends from the last several quarters:

• Year-over-year earnings improved meaningfully. Q1 2026 common EPS was $1.56 versus $1.13 in Q1 2025, and common net income rose to $232 million from $169 million.
• Operating cash flow remains solid. Zions generated $423 million in operating cash flow in Q1 2026, a healthy level for a regional bank and well above Q1 2025’s $179 million.
• Deposit growth was strong in the latest quarter. Deposits increased by $1.263 billion in Q1 2026, helping support funding and balance sheet stability.
• Loan balances remain substantial and relatively stable. Net loans and leases were $60.6 billion in Q1 2026, up from $59.2 billion in Q1 2025.
• Credit costs looked manageable in Q1 2026. The provision for credit losses was a modest $7 million, and earlier 2025 quarters also showed low provisions relative to revenue.
• Net interest income has been fairly range-bound. Q1 2026 net interest income was $662 million, compared with $683 million in Q4 2025 and $624 million in Q1 2025, suggesting stability but not strong growth.
• Fee income continues to contribute, but it is not a major growth engine. Non-interest income was $187 million in Q1 2026, similar to recent quarters.
• The bank still relies heavily on spread income. Interest income and interest expense dominate results, which makes profitability sensitive to rate changes and funding costs.
• Non-interest expense remains elevated. Q1 2026 non-interest expense totaled $562 million, up from $538 million in Q1 2025, which limits margin expansion.
• Capital levels have declined versus prior years. Total common equity was $7.23 billion in Q1 2026, down from $8.19 billion in Q1 2023, while AOCI remained negative at $(1.94) billion.

Looking at the broader trend, Zions has recovered from the tougher 2023 period, when earnings and operating cash flow were weaker and the balance sheet was under more stress. Since then, quarterly net income has generally improved, and operating cash flow has been consistently positive in most quarters. That said, profitability has not expanded dramatically, and expense control remains important.

The balance sheet also shows a bank that is still well-funded, with $87.96 billion in assets in Q1 2026 and a large deposit base. But the mix of funding has shifted over time, long-term debt has moved around significantly quarter to quarter, and equity has not rebuilt to older highs. For investors, that means Zions looks more stable than it did two years ago, but not without sensitivity to funding costs, credit trends, and operating efficiency.

Bottom line: Zions Bancorporation appears to be on firmer footing than it was in 2023, with better earnings and strong cash generation in the latest quarter. However, the bank still faces pressure from relatively high expenses and a capital base that has not fully recovered. The stock’s outlook will likely depend on whether management can keep deposits growing, defend net interest income, and hold the line on costs.