Zions Bancorp | 10-Q: FY2026 Q1 Revenue: USD 1.183 B

Revenue: As of FY2026 Q1, the actual value is USD 1.183 B.EPS: As of FY2026 Q1, the actual value is USD 1.56, beating the estimate of USD 1.4257.EBIT: As of FY2026 Q1, the actual value is USD 628 M.Operational MetricsNet Interest Income: For Q1 2026, net interest income was $662 million, an increase of $38 million (6%) from $624 million in Q1 2025.Net Interest Margin: The net interest margin improved to 3.27% in Q1 2026 from 3.10% in Q1 2025, an increase of 17 basis points.Provision for Credit Losses: The provision for credit losses was - $7 million in Q1 2026, compared with $18 million in the prior year period.Noninterest Expense: Total noninterest expense was $562 million for Q1 2026, up $24 million (4%) from $538 million in Q1 2025.Salaries and employee benefits increased by 6% to $361 million in Q1 2026 from $342 million in Q1 2025.Technology, telecom, and information processing increased by 6% to $74 million in Q1 2026 from $70 million in Q1 2025.Professional and legal services increased by 54% to $20 million in Q1 2026 from $13 million in Q1 2025.Deposit insurance and regulatory expense decreased by -32% to $15 million in Q1 2026 from $22 million in Q1 2025.Efficiency Ratio: The efficiency ratio improved to 65.0% in Q1 2026 from 66.6%.Net Loan and Lease Charge-offs: Net loan and lease charge-offs were $4 million (0.03% annualized) in Q1 2026, compared to $16 million (0.11%) in the prior year quarter.Nonperforming Assets: Nonperforming assets totaled $292 million (0.48% of total loans and leases and OREO) as of March 31, 2026, down from $307 million (0.51%) in the prior year period and $320 million (0.52%) at December 31, 2025.Classified Loans: Classified loans were $2.3 billion (3.80%) as of March 31, 2026, a decrease from $2.9 billion (4.82%) in the prior year period and $2,380 million (3.91%) at December 31, 2025.Revenue CategoriesTotal Noninterest Income: Total noninterest income was $187 million for Q1 2026, up $16 million (9%) from $171 million in Q1 2025.Customer-Related Noninterest Income: Customer-related noninterest income increased by $14 million (9%) to $172 million for Q1 2026 from $158 million in Q1 2025.Commercial account fees were $48 million for Q1 2026, up 7% from $45 million in Q1 2025.Card fees were $22 million for Q1 2026, down -4% from $23 million in Q1 2025.Retail and business banking fees were $20 million for Q1 2026, up 18% from $17 million in Q1 2025.Loan-related fees and income were $23 million for Q1 2026, up 35% from $17 million in Q1 2025.Capital markets fees and income were $28 million for Q1 2026, up 4% from $27 million in Q1 2025.Wealth management fees were $16 million for Q1 2026, up 7% from $15 million in Q1 2025.Other customer-related fees were $15 million for Q1 2026, up 7% from $14 million in Q1 2025.Noncustomer-Related Noninterest Income: Noncustomer-related noninterest income was $15 million for Q1 2026, up 15% from $13 million in Q1 2025, driven by valuation adjustments on servicing rights and gains on fixed asset sales, partially offset by lower securities gains.Unique MetricsAverage Interest-Earning Assets: Average interest-earning assets were $83,401 million for Q1 2026, an increase of $399 million (<1%) from $83,002 million for Q1 2025.Yield on average interest-earning assets declined by 18 basis points to 4.90% for Q1 2026 from 5.08% for Q1 2025.Average Interest-Bearing Liabilities: Average interest-bearing liabilities decreased by -5% to $54,654 million for Q1 2026 from $57,322 million for Q1 2025.Total cost of deposits decreased by 28 basis points to 1.48% for Q1 2026 from 1.76% for Q1 2025.Rate paid on total deposits and interest-bearing liabilities decreased by 33 basis points to 1.68% for Q1 2026 from 2.01% for Q1 2025.Total Technology Spend: Total technology spend was $135 million for Q1 2026, an increase of $12 million (10%) from $123 million for Q1 2025.Loan and Lease Portfolio (as of March 31, 2026)Total Loans and Leases: Total loans and leases were $61,312 million, up 1% from $60,900 million at December 31, 2025.Commercial: $31,858 million (51.9% of total loans), up 0.6% from $31,679 million at December 31, 2025.Commercial and industrial: $18,263 million (29.7% of total loans).Owner-occupied: $9,323 million (15.2% of total loans).Municipal: $4,272 million (7.0% of total loans).Loans to Nondepository Financial Institutions (NDFIs): $2,034 million (6.4% of total commercial loans, 3.3% of total loans).Commercial Real Estate (CRE): $13,658 million (22.3% of total loans), up 2.0% from $13,396 million at December 31, 2025.Term: $11,387 million (18.6% of total loans).Construction and land development: $2,271 million (3.7% of total loans).Multifamily CRE: $4,091 million (30.0% of total CRE loans) with a weighted average LTV of 60% for term loans.Industrial CRE: $3,100 million (22.7% of total CRE loans) with a weighted average LTV of 64% for term loans.Office CRE: $1,595 million (11.7% of total CRE loans) with a weighted average LTV of 57% for term loans.Consumer: $15,796 million (25.8% of total loans), down -0.2% from $15,825 million at December 31, 2025.1-4 family residential: $10,406 million (17.0% of total loans).Home equity credit line: $3,976 million (6.5% of total loans).Credit Quality Metrics (as of March 31, 2026)Allowance for Credit Losses (ACL): $713 million, compared to $743 million at March 31, 2025.Ratio of ACL to total loans and leases: 1.16%, compared to 1.24% at March 31, 2025.NDFI Credit Quality: Criticized loan ratio of 0.7%, Classified loan ratio of 0.7%, Nonaccrual loan ratio of 0.5%, Delinquency ratio of 0.7%.Multifamily CRE Credit Quality: Criticized loan ratio of 16.6%, Classified loan ratio of 13.6%, Nonaccrual loan ratio of 0%, Delinquency ratio of 0%.Industrial CRE Credit Quality: Criticized loan ratio of 11.7%, Classified loan ratio of 8.8%, Nonaccrual loan ratio of 0%, Delinquency ratio of 0.1%.Office CRE Credit Quality: Criticized loan ratio of 7.8%, Classified loan ratio of 7.8%, Nonaccrual loan ratio of 2.3%, Delinquency ratio of 1.2%.Deposits and Liquidity (as of March 31, 2026)Total Deposits: Total deposits were $76,907 million, up from $75,644 million at December 31, 2025.Noninterest-bearing demand: $27,081 million (35.2% of total deposits).Interest-bearing (Savings and money market, Time, Brokered): $49,826 million (64.8% of total deposits).Customer Deposits (excluding brokered deposits): $73,112 million, up from $71,807 million at December 31, 2025.Estimated Uninsured Deposits: Estimated uninsured deposits were $35,018 million (46% of total deposits).Total Available Liquidity: Total available liquidity was $46.9 billion, which exceeds uninsured deposits.Capital Management (as of March 31, 2026)Common Equity Tier 1 (CET1) Capital: CET1 Capital was $8,050 million, up 9% from $7,379 million in the prior year period.CET1 Capital Ratio: The CET1 Capital Ratio improved to 11.6% from 10.8% in the prior year period.Total Shareholders’ Equity: Total shareholders’ equity was $7,296 million, up 2% from $7,180 million at December 31, 2025.Tangible Book Value Per Common Share: Tangible book value per common share increased by 19% to $41.75 from $34.95 in the prior year period.Future Outlook and StrategyZions Bancorporation, National Association entered an agreement in Q1 2026 to acquire the agency lending business of Basis Multifamily Finance I, LLC, intending to expand permanent financing solutions for multifamily housing clients and enhance its capital markets franchise. The company also announced a plan in May 2026 to repurchase up to $225 million of common shares outstanding for the remainder of 2026. While evaluating proposed changes to the Basel III Endgame framework, Zions Bancorporation, National Association expects to remain well capitalized, managing its capital position in light of evolving regulatory requirements.