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Zions Bancorporation National Association (ZION)
NASDAQ:ZION
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Zions Bancorporation National Association
(NASDAQ:ZION)
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Rating:66Neutral
Price Target:
$64.00
â–²(10.08% Upside)
Action:DowngradedDate:02/25/26
The score is driven primarily by solid financial performance (improved leverage, steady returns, and strong recent free cash flow) and a supportive earnings outlook (NII/fee growth guidance, strong credit and capital), partially offset by uneven revenue trends and weak near-term technical momentum. Valuation is a clear positive with a low P/E and ~3% dividend yield.
Positive Factors
Improved Balance Sheet and Capital
Zions materially reduced leverage and built equity over 2023–2025, producing a cleaner capital base and CET1 strength. This durable improvement supports loss absorption, regulatory resilience and the company's stated ability to contemplate buybacks or higher distributions as capital accrual continues.
Strong Free Cash Flow Generation
Consistent, sizable free cash flow in 2025 that matched net income indicates robust internal funding capacity. Reliable cash generation underpins capital returns, investments in growth initiatives and balance-sheet flexibility, reducing reliance on external financing during normal cycles.
Revenue Diversification and Fee Momentum
Growing customer fees and rising capital-markets revenue materially diversify earnings beyond NII. A larger fee base reduces outright rate sensitivity, steadies PPNR over cycles, and supports durable return-on-equity by expanding higher-margin, less rate-dependent revenue streams.
Negative Factors
Choppy Top-line / Revenue Volatility
Top-line inconsistency—sharp 2023 gains then a 2025 decline—signals revenue sensitivity to economic and rate shifts. This unevenness makes forward earnings less predictable, complicates planning for expense and capital allocation, and reduces confidence in sustainable growth trajectories.
Commercial Real Estate Concentration
A sizeable CRE share of loans (22%) concentrates exposure in a cyclical sector that can underperform in regional slowdowns. Even with current low delinquencies, concentration elevates tail-risk for asset-quality stress and could force higher provisions or constrain capital returns if CRE conditions deteriorate.
Guidance Dependent on Fed Cuts and Funding Assumptions
Management's 2026 NII and expense targets rely materially on assumed Fed easing and deposit repricing. If rates stay higher or deposit behavior differs, margin expansion and expected operating leverage may not materialize; terminated-swap impacts and rising noninterest expense could further compress durable earnings.
Zions Bancorporation National Association (ZION) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.60B
Dividend Yield2.97%
Average Volume (3M)2.08M
Price to Earnings (P/E)9.5
Beta (1Y)1.27
Revenue Growth0.12%
EPS Growth27.30%
CountryUS
Employees9,392
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.76
Shares Outstanding147,888,820
10 Day Avg. Volume1,833,139
30 Day Avg. Volume2,080,177
Financial Highlights & Ratios
PEG Ratio0.42
Price to Book (P/B)1.20
Price to Sales (P/S)1.74
P/FCF Ratio8.78
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue2.51
Enterprise Value/Gross Profit3.75
Enterprise Value/Ebitda9.87
Forecast
1Y Price Target
$66.76Price Target Upside14.83% Upside
Rating ConsensusHold
Number of Analyst Covering18
EPS Forecast (FY)6.23
Revenue Forecast (FY)$3.53B
Zions Bancorporation National Association Business Overview & Revenue Model
Company DescriptionZions Bancorporation, National Association provides various banking and related services primarily in the states of Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The company offers corporate banking services; commercial banking, including a focus on small- and medium-sized businesses; commercial real estate banking services; municipal and public finance services; retail banking, including residential mortgages; trust services; wealth management and private client banking services; and capital markets products and services. As of December 31, 2020, it operated 422 branches, which included 273 owned and 149 leased. The company was formerly known as ZB, National Association and changed its name to Zions Bancorporation, National Association in September 2018. Zions Bancorporation, National Association was founded in 1873 and is headquartered in Salt Lake City, Utah.
How the Company Makes MoneyZions Bancorporation generates revenue primarily through net interest income, which is earned from the interest on loans and investments minus the interest paid on deposits and borrowings. Key revenue streams include commercial loans, consumer loans, and mortgage origination fees. The bank also earns significant non-interest income from service fees, investment management fees, and wealth management services. Additionally, Zions benefits from strategic partnerships with various financial service providers that enhance its product offerings and customer reach, contributing to its overall profitability.
Zions Bancorporation National Association Earnings Call Summary
Earnings Call Date:Jan 20, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 20, 2026
Earnings Call Sentiment Positive
The quarter showed clear progress on core financial metrics: strong earnings and EPS growth, continued NIM expansion, robust deposit gathering, low charge-offs and sizable tangible book value accretion. Revenue diversification (capital markets and customer fees) and targeted growth initiatives (small business, SBA lending, banker hires) are notable positives. Offsetting items include a sequential PPNR decline partly driven by a $15 million charitable donation, rising noninterest expenses as the bank invests in growth, some asset-yield compression and an uptick in C&I classified loans. Management provided constructive 2026 guidance (moderately increasing NII and fee income, controlled expense growth with expected positive operating leverage) but that outlook depends on interest-rate assumptions. On balance, the positive operational and capital trends outweigh the headwinds, supporting a favorable near-term outlook.Q4-2025 Updates
Positive Updates
Meaningful Earnings Growth
Reported earnings of $262 million, up 19% sequentially and 31% year-over-year; full-year earnings grew 21% versus prior year.
Diluted EPS Improvement
Diluted earnings per share of $1.76, up from $1.48 last quarter and $1.34 a year ago (includes $0.08 per share headwind from a charitable contribution and $0.11 benefit from FDIC assessment reversal and SBIC gains).
Net Interest Margin and NII Expansion
Net interest margin expanded for the eighth consecutive quarter to 3.31% (up ~3 basis points sequentially and ~26 basis points year-over-year); net interest income increased $56 million (9%) versus Q4 2024 and $11 million versus prior quarter.
Deposit Growth and Improved Funding Mix
Customer deposits grew at a healthy pace (9% annualized); period-end deposits rose $766 million quarter-over-quarter; average deposits increased 2.3% q/q; average noninterest-bearing deposits grew ~$1.7 billion (6% q/q). Deposit cost declined 11 basis points sequentially to 1.56% and total funding costs fell 16 basis points to 1.76%.
Strong Credit Quality
Net charge-offs were very low at $7 million (≈5 basis points annualized of total loans); provision for credit losses of $6 million; allowance for credit losses was 1.19% of loans with coverage of nonaccrual loans at 215%; nonperforming assets remained low at 52 basis points of loans.
Capital Strength and Tangible Book Value Growth
Common equity Tier 1 ratio of 11.5%; tangible book value per share increased 21% year-over-year — third straight year of >20% growth — enabling management to say they are nearing the point to increase capital distributions (management expects potential buybacks in the second half of the year).
Revenue Diversification and Fee Momentum
Adjusted customer-related noninterest income reached a record $175 million this quarter; capital markets fees increased ~25% year-over-year (management has doubled capital markets fees since 2020); adjusted PPNR for full year increased 12% year-over-year.
Loan Production and Targeted Growth Initiatives
Period-end loan balances increased by $615 million sequentially with commercial growth in Texas, California and Pacific Northwest; focused initiatives include targeted marketing, banker hiring and small business lending (SBA 7(a) loans nearly doubled in number and rose ~53% in dollars).
Negative Updates
Sequential PPNR Decline and One-time Donation Impact
Adjusted PPNR was $331 million, down 6% sequentially (up 6% year-over-year); the $15 million charitable donation created an ~$0.08 per share headwind and meaningfully impacted quarter-over-quarter adjusted PPNR (when excluding the donation adjusted PPNR was down ~2% q/q and up ~11% y/y).
Rising Noninterest Expense
Adjusted noninterest expense was $548 million, up $28 million (5%) versus prior quarter and up 8% year-over-year; excluding the $15 million donation, expenses were up 2% q/q and 5% y/y. Management expects adjusted noninterest expense to be moderately increasing in 2026.
Earning Asset Yield Compression and Rate Sensitivity
Total loan yields declined ~15 basis points sequentially and earning asset yields were pressured ~15 basis points q/q. Fixed-rate asset repricing lift has slowed (now ~1 basis point vs prior 2–3 bps expectations). Guidance depends on assumed Fed cuts (management assumes 225 bps of cuts in June and September), creating downside risk to NIM if the rate path differs.
CRE Concentration and Shift in Classified Loans
Commercial Real Estate represents $13.4 billion (22% of loans). Although CRE nonaccruals and delinquencies remain low and classified CRE declined $132 million, C&I classified loans increased by $92 million sequentially — an area management is monitoring.
Terminated Swap Headwind to NII
Management highlighted approximately $29 million of terminated swap-related headwind expected in 2026 (roughly half the impact experienced in 2025), which will temper net interest income growth.
Guidance and Macro Uncertainty
Several parts of the 2026 outlook (NII, deposit cost reductions, loan growth) rely on assumptions about the timing and magnitude of Fed rate cuts and deposit behavior; deviations from assumed rate cuts or slower deposit repricing could pressure margin and funding-cost improvement.
Company Guidance
Guidance for fiscal 2026 calls for net interest income to be moderately increasing (the outlook assumes 225 bps of Fed funds cuts in June and September) driven by favorable earning‑asset and interest‑bearing liability remix, loan and deposit growth and declining funding costs; period‑end loans are expected to be moderately higher (Q4 period‑end loans rose $615M) with growth led by C&I and owner‑occupied commercial loans (CRE was $13.4B or 22% of loans). Customer‑related fee income is also expected to be moderately increasing and the company expects to be at the top end of that guide (Q4 customer fees $177M, adjusted $175M; capital markets fees +25% YoY). On expenses, adjusted noninterest expense is expected to be moderately increasing off a ~$2.122B base (strip the $15M charitable donation); Q4 adjusted expense was $548M (up 5% QoQ, 8% YoY; ex‑donation +2% QoQ, +5% YoY). Management expects positive operating leverage of roughly 100–150 bps in 2026 (after achieving >300 bps last year excluding the donation), while managing securities cash flows ($554M gross, $288M net of reinvestment) with a securities duration ~3.8 years, current total funding cost 1.76% and deposit cost 1.56%; other noted items include a ~$29M terminated‑swap headwind for 2026, net charge‑offs of ~5 bps, allowance at 1.19% of loans, CET1 at 11.5%, tangible book value per share up 21% YoY, and an expectation to be in a position to increase capital distributions (including possible buybacks) in H2 2026.Zions Bancorporation National Association Financial Statement Overview
Summary
Solid but mixed fundamentals: leverage improved materially since 2022 (debt-to-equity ~0.64 in 2025) and equity grew ($5.7B to $7.2B, 2023–2025), supporting resilience. Profitability and returns are steady (ROE ~12–13% in 2023–2025) and 2025 margins improved vs 2024. Offsetting this, revenue has been uneven and declined in 2025 (-8.1%), and both earnings/cash flows show multi-year volatility despite strong 2025 free cash flow ($1.07B; FCF/NI = 1.0).Income Statement
Revenue has been choppy: strong growth in 2023 (+38.6%) and 2024 (+8.0%) followed by a modest decline in 2025 (-8.1%). Profitability improved versus 2023–2024 (2025 net margin ~18.2% vs ~15.7% in 2024), but remains well below the unusually strong 2021–2022 levels. Operating profitability looks steady-to-improving recently (2025 EBIT margin ~23.8% vs ~20.3% in 2024), yet the multi-year pattern suggests earnings sensitivity and less consistent top-line momentum.64
Positive
Balance Sheet
Leverage appears controlled for a regional bank and has improved materially from 2022 (debt-to-equity ~2.26) to 2025 (~0.64), indicating a cleaner capital position versus that prior peak. Equity has also grown from 2023 to 2025 ($5.7B to $7.2B), supporting balance-sheet resilience. Returns on equity are solid and fairly steady (~12–13% in 2023–2025), though not at the higher 2022 level (~18.5%). Key risk: leverage has fluctuated meaningfully across years, which points to potential balance-sheet volatility through cycles.71
Positive
Cash Flow
Cash generation is a positive: free cash flow was strong in 2025 ($1.07B) and roughly matched net income (free cash flow to net income = 1.0), improving from 2024 (~0.92) and 2023 (~0.87). Free cash flow growth accelerated sharply in 2025, following a decline in 2023, highlighting volatility in cash flows year-to-year. Operating cash flow also improved in 2025 versus 2023, but the pattern across the period is uneven, which reduces overall cash-flow quality consistency.66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.94B | 4.99B | 4.62B | 3.34B | 2.97B |
| Gross Profit | 3.31B | 3.06B | 2.98B | 3.03B | 3.19B |
| EBITDA | 1.29B | 1.14B | 1.03B | 1.26B | 1.43B |
| Net Income | 899.00M | 784.00M | 680.00M | 907.00M | 1.13B |
Balance Sheet | |||||
| Total Assets | 88.99B | 88.78B | 87.20B | 89.55B | 93.20B |
| Cash, Cash Equivalents and Short-Term Investments | 18.76B | 12.63B | 12.50B | 13.91B | 34.93B |
| Total Debt | 4.58B | 4.37B | 4.54B | 11.07B | 1.92B |
| Total Liabilities | 81.81B | 82.65B | 81.51B | 84.65B | 85.74B |
| Stockholders Equity | 7.18B | 6.12B | 5.69B | 4.89B | 7.46B |
Cash Flow | |||||
| Free Cash Flow | 981.00M | 1.05B | 772.00M | 1.28B | 423.00M |
| Operating Cash Flow | 1.10B | 1.15B | 885.00M | 1.47B | 629.00M |
| Investing Cash Flow | 709.00M | -1.64B | 2.37B | 1.41B | -11.58B |
| Financing Cash Flow | -1.78B | 427.00M | -3.20B | -2.81B | 11.00B |
Zions Bancorporation National Association Technical Analysis
Neutral
58.14
Price Trends
60.10
Negative
56.39
Positive
54.36
Positive
Market Momentum
-0.25
Positive
42.79
Neutral
39.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZION, the sentiment is Neutral. The current price of 58.14 is below the 20-day moving average (MA) of 61.50, below the 50-day MA of 60.10, and above the 200-day MA of 54.36, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 42.79 is Neutral, neither overbought nor oversold. The STOCH value of 39.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ZION.
Zions Bancorporation National Association Risk Analysis
Zions Bancorporation National Association disclosed 36 risk factors in its most recent earnings report. Zions Bancorporation National Association reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Zions Bancorporation National Association Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $9.21B | 11.00 | 14.05% | 2.31% | 5.87% | 53.36% | |
74 Outperform | $9.87B | 12.63 | 12.11% | 1.40% | 3.58% | 13.93% | |
73 Outperform | $9.18B | 12.93 | 9.02% | 2.43% | 20.72% | 3.63% | |
69 Neutral | $8.86B | 13.94 | 15.16% | 3.05% | 2.85% | 20.57% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $8.60B | 9.54 | 13.35% | 2.97% | 0.12% | 27.30% |
* Financial Sector Average
ZION
Zions Bancorporation National Association
58.14
8.76
17.74%
CFR
Cullen/Frost Bankers
140.21
13.20
10.39%
ONB
Old National Bancorp Capital
23.55
1.73
7.93%
BPOP
Popular
138.08
45.99
49.95%
WTFC
Wintrust Financial
146.68
32.73
28.72%
Zions Bancorporation National Association Corporate Events
Business Operations and StrategyExecutive/Board Changes
Zions Bancorporation Announces Zions Bank Leadership Transition
Neutral
Dec 22, 2025
On December 22, 2025, Zions Bancorporation, N.A. announced that Paul E. Burdiss will retire as Executive Vice President of Zions Bancorporation and President and Chief Executive Officer of its Zions Bank division, which serves Utah, Idaho and Wyoming, effective December 31, 2025, marking the end of a more than 35-year financial services career that included roles at SunTrust Bank and Comerica. To support continuity, Burdiss entered into a Retirement and Consulting Agreement effective December 20, 2025, under which he will provide transition and advisory services through December 31, 2026, subject to non-compete, non-solicit and confidentiality covenants and in return for quarterly consulting payments, continued medical benefits for up to a year, and the continued administration of his outstanding incentive awards; concurrently, the company named current Executive Vice President and Executive Director of Commercial Banking Nathan (Nate) Callister as his successor as CEO of Zions Bank, underscoring a planned leadership handover intended to preserve Zions Bank’s strong regional positioning in the Intermountain West and maintain stability for customers, employees and investors.
The most recent analyst rating on (ZION) stock is a Hold with a $63.00 price target. To see the full list of analyst forecasts on Zions Bancorporation National Association stock, see the ZION Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.