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Get filing alertsZions reports Q2 2026 EPS of $3.05, boosted by $215M Visa share sale and SBIC gains
Filed July 20, 2026 · Period ending July 20, 2026 · ~2 min read
Key Changes
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Net earnings reached $452M ($3.05/share), up 86% YoY, including $215M gain from Visa Class B-1 share sale ($1.12/share) and $37M net SBIC investment gains ($0.19/share); core earnings were $1.74/share, up 10% YoY.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
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Net interest margin expanded 10 bps YoY to 3.27% on lower funding costs; deposit costs fell 20 bps to 1.48% while net interest income grew 4% to $677M, driven by shift to higher-yielding loans.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
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CET1 capital ratio strengthened to 11.8% from 11.0% YoY; tangible book value per share jumped 22% to $44.74, reflecting higher retained earnings and reduced unrealized AOCI losses from securities fair value increases.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
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Loans grew 3% YoY to $62.5B with 8% annualized linked-quarter growth; credit quality improved as net charge-offs held at 0.06%, nonperforming assets declined to 0.48% of loans, and classified loans fell to 3.72% from 4.43%.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
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Customer-related noninterest income rose 11% to $182M on broad-based fee growth, led by $8M increase in capital markets fees from real estate activity and investment banking advisory.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR →
Summary
Zions Bancorporation reported strong second-quarter 2026 results, with net earnings of $452 million or $3.05 per diluted share, up 86% year-over-year. The headline figure included two significant non-operating gains: a $215 million gain from selling Visa Class B-1 shares and $37 million in net unrealized gains from SBIC investments, together contributing $1.31 per share.
Stripping out these items, core earnings of $1.74 per share still grew 10% year-over-year, reflecting improved operating fundamentals. The bank's net interest margin expanded 10 basis points to 3.27%, driven by lower funding costs as deposit costs fell 20 basis points to 1.48%. Net interest income grew 4% to $677 million, supported by a favorable shift toward higher-yielding loans.
Loan growth accelerated to 8% annualized in the quarter, reaching $62.5 billion, while credit quality remained solid with net charge-offs at just 0.06% of loans and nonperforming assets declining to 0.48%. Capital strength improved markedly, with the CET1 ratio rising to 11.8% and tangible book value per share jumping 22% to $44.74, aided by reduced unrealized losses in AOCI as securities values recovered. For retail holders, the quarter demonstrates Zions' ability to grow core earnings while benefiting from opportunistic asset sales. The margin expansion and loan growth momentum, combined with pristine credit metrics and strengthened capital, position the bank well for continued profitability. The Visa gain is a one-time event, but the 10% core earnings growth and improved balance sheet fundamentals are the more durable takeaways.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Zions Bancorporation announced Q2 2026 financial results and scheduled an earnings conference call for July 20, 2026 at 5:30 p.m. ET.
Added in current filing · verify on EDGAR →
On July 20, 2026, Zions Bancorporation, National Association (“the Bank”) announced its financial results for the quarter ended June 30, 2026 and its intent to host a conference call to discuss such results at 5:30 p.m. Eastern Time on July 20, 2026.
Zions Bancorporation disclosed its second quarter 2026 financial results and scheduled an earnings conference call for the same day at 5:30 p.m. Eastern Time. The press release with detailed financial results is attached as Exhibit 99.1, and a presentation for the conference call is attached as Exhibit 99.2.
Event · Exhibit 99.1
Added in current filing · view on EDGAR → · paraphrased
Net earnings per diluted common share $3.05 ... Net earnings $452 million ... Gain on sale of Visa Class B-1 shares was $215 million, or $1.12 per share ... Net unrealized gains from SBIC investments were $37 million, or $0.19 per share ($44 million unrealized gains less $7 million success fee accrual), compared with $9 million, or $0.05 per share
Zions reported second quarter 2026 net earnings of $452 million, or $3.05 per diluted share. This included two significant non-operating gains: a $215 million gain from selling Visa Class B-1 shares (adding $1.12 per share) and $37 million in net unrealized gains from Small Business Investment Company investments (adding $0.19 per share). Excluding these gains, core earnings were $1.74 per share, up 10% from $1.58 in the prior year quarter.
Added in current filing · view on EDGAR →
Net interest income was $677 million, up 4% ... NIM was 3.27%, compared with 3.17%, and remained flat compared with the prior quarter ... Net interest income increased $29 million, or 4%, in the second quarter of 2026, compared with the prior year period, primarily driven by lower funding costs. This growth was further supported by an improved mix of average interest-earning assets, reflecting growth in higher-yielding loans and a decline in lower-yielding investment securities. As a result, the net interest margin increased to 3.27%, up from 3.17% in the prior year period, and remained unchanged from the previous quarter.
Net interest income rose 4% year-over-year to $677 million, driven by lower funding costs and a shift toward higher-yielding loans. The net interest margin expanded 10 basis points to 3.27% from 3.17% a year ago, though it held steady versus the prior quarter. The cost of deposits declined 20 basis points to 1.48%, reflecting the broader lower interest rate environment.
Added in current filing · view on EDGAR →
Loans and leases were $62.5 billion, up 3% ... The annualized ratio of net loan and lease charge-offs to average loans and leases was 0.06%, compared with 0.07% ... Nonperforming assets were $298 million, or 0.48% of loans and leases and other real estate owned, compared with $313 million, or 0.51% ... Classified loans were $2.3 billion, or 3.72% of loans and leases, compared with $2.7 billion, or 4.43%
Loans and leases grew 3% year-over-year to $62.5 billion, with strong linked-quarter annualized growth of 8%. Credit quality remained solid: net charge-offs were just 0.06% of average loans (down from 0.07%), nonperforming assets declined to 0.48% of loans from 0.51%, and classified loans improved to 3.72% from 4.43%, driven mainly by commercial real estate loan payoffs.
Added in current filing · view on EDGAR →
The estimated CET1 capital ratio was 11.8%, compared with 11.0% ... Tangible book value per common share was $44.74, up 22% ... Estimated common equity tier 1 (“CET1”) capital was $8.4 billion, an increase of 11%, compared with $7.6 billion in the prior year period. The estimated CET1 capital ratio was 11.8%, compared with 11.0%. Tangible book value per common share increased 22% to $44.74, mainly due to an increase in retained earnings and reduced unrealized losses in AOCI.
Zions strengthened its capital position significantly. The estimated Common Equity Tier 1 ratio rose to 11.8% from 11.0% a year ago, while tangible book value per share jumped 22% to $44.74 from $36.81. The improvement reflects higher retained earnings and reduced unrealized losses in accumulated other comprehensive income, driven by increases in the fair value of available-for-sale securities and amortization of losses on securities transferred to held-to-maturity.
Event · Exhibit 99.2
Added in current filing · view on EDGAR →
Net earnings of $452 million, or $3.05 per share, increased 95% from the prior quarter, while increasing 86% versus the prior-year period on improved pre-provision net revenue (non-recurring gains contributed $252 million (pre-tax), or approximately $1.31 per share)
Zions reported second-quarter 2026 net earnings of $452 million, or $3.05 per diluted share, up 95% from the prior quarter and 86% year-over-year. The quarter included $252 million in pre-tax non-recurring gains (approximately $1.31 per share): a $215 million gain on the sale of Visa shares and a $37 million net unrealized gain from valuation adjustments in the SBIC investment portfolio. Excluding these gains, return on average tangible common equity would have been approximately 16.6%.
Added in current filing · view on EDGAR →
The net interest margin remained at 3.27% compared to the prior quarter and increased 10 basis points versus prior year on improved funding costs and mix
The net interest margin held steady at 3.27% sequentially and improved 10 basis points year-over-year, driven by favorable funding repricing and remixing. Net interest income increased $15 million (2%) versus the prior quarter and $29 million (4%) year-over-year. Interest expense on deposits decreased $31 million (10%) year-over-year, while interest expense on borrowings fell $30 million (33%) year-over-year.
Added in current filing · view on EDGAR →
Average loans grew 4.7% annualized versus prior quarter and grew 2.3% versus prior year ... Average customer deposits grew 4.0% annualized versus prior quarter and 3.7% versus prior year
Average loans grew 4.7% annualized versus the prior quarter (2.3% year-over-year), reaching $61.9 billion. Average customer deposits grew 4.0% annualized versus the prior quarter (3.7% year-over-year), totaling $72.4 billion. Period-end loans increased $1.2 billion sequentially, led by C&I and CRE term loans. Period-end customer deposits decreased $439 million (-0.6%) sequentially but grew $2.8 billion (+4%) year-over-year.
Added in current filing · view on EDGAR → · paraphrased
Net charge-offs were 0.06% of loans, annualized ... Net charge-offs relative to average loans: 0.06% annualized in 2Q26 ... 0.12% over the last 12 months ... 0.48%: NPAs / loans + OREO ... 3.72%: Classified loans / total loans ... 4.51%: Criticized loans / total loans
Net charge-offs were 0.06% of average loans annualized in Q2 2026, down from 0.07% in the year-ago quarter and 0.03% in the prior quarter. Over the trailing 12 months, net charge-offs averaged 0.12% of loans. Nonperforming assets remained stable at 0.48% of loans plus OREO. Classified loans decreased to 3.72% of total loans, and criticized loans declined to 4.51%, both improving sequentially. The allowance for credit losses stood at 1.13% of total loans, down three basis points from the prior quarter.
Added in current filing · view on EDGAR → · paraphrased
Common Equity Tier 1 Capital Ratio ... 11.8% ... 11.5% ... 11.5% ... 11.3% ... 11.0%
The Common Equity Tier 1 (CET1) capital ratio increased to an estimated 11.8% at June 30, 2026, up from 11.5% in the prior quarter and 11.0% in the year-ago quarter. The allowance for credit losses represented 12.0% of risk-weighted assets, while net charge-offs annualized were only 0.05% of risk-weighted assets, indicating strong loss-absorbing capacity relative to the bank's risk profile.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 21, 2026 · How we verify