Zions Bancorporation National Association (ZION) AI Stock Analysis

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Zions Bancorporation National Association

(NASDAQ:ZION)

Rating:74Outperform

Price Target:

$60.00

▲(6.16% Upside)

Zions Bancorporation's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The attractive valuation further supports the stock's appeal. Technical indicators suggest neutral momentum, while challenges in deposit costs present a minor risk.

Positive Factors

Capital Position

The company has a strong capital position with its Common Equity Tier 1 Capital ratio well above regulatory minimums.

Financial Performance

ZIONS saw NIM expand for the 6th straight quarter, which is a positive indicator for the company's financial health.

Operational Performance

Fees beat in the quarter on better capital markets performance, suggesting strong operational performance.

Negative Factors

Loan Growth

The forward guide was lowered marginally given a more cautious outlook on loan growth and more rate cuts in the forward curve.

Macro Environment

Management tone on the macro environment was also decidedly more negative on today's call given tariff related uncertainty.

Profitability

With higher fees come higher expenses, which could impact profitability.

Zions Bancorporation National Association (ZION) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$8.58B

Dividend Yield3.08%

Average Volume (3M)1.38M

Price to Earnings (P/E)10.6

Beta (1Y)1.47

Revenue Growth2.64%

EPS Growth32.07%

CountryUS

Employees9,392

SectorFinancial

Sector Strength71

IndustryBanks - Regional

Share Statistics

EPS (TTM)1.63

Shares Outstanding147,623,800

10 Day Avg. Volume1,229,758

30 Day Avg. Volume1,378,793

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.66

Enterprise Value/Revenue2.86

Enterprise Value/Gross Profit4.59

Enterprise Value/Ebitda12.16

Forecast

1Y Price Target

$61.09

Price Target Upside8.09% Upside

Rating ConsensusHold

Number of Analyst Covering18

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 arises from the interest earned on loans and investments minus the interest paid on deposits and borrowings. Key revenue streams include commercial loans, consumer loans, mortgages, and various banking fees. The bank also earns non-interest income from services such as wealth management, investment services, and fees associated with transaction processing. Strategic partnerships with financial technology companies enhance its service offerings and customer experience, contributing to customer retention and increased transaction volume, thereby bolstering overall earnings.

Zions Bancorporation National Association Earnings Call Summary

Earnings Call Date:Jul 21, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 20, 2025

Earnings Call Sentiment Positive

The earnings call reflected a generally positive outlook with significant earnings growth, net interest margin expansion, and successful product launches contributing to the positive sentiment. However, challenges such as declining deposit balances, pressures on noninterest expenses, and ongoing issues in the CRE portfolio present areas of concern.

Q2-2025 Updates

Positive Updates

Significant Earnings Growth

Second quarter net earnings reached $243 million, marking a 28% improvement over the prior year period and a 44% increase compared to the first quarter.

Net Interest Margin Expansion

The net interest margin expanded for the sixth consecutive quarter to 3.17% due to lower funding costs and an improved earning asset mix.

Strong SBA 7(a) Program Growth

The number of deals booked through the SBA 7(a) program increased by 91% in the first nine months of the SBA’s 2025 fiscal year compared to the same period last year.

Successful Product Launch

The rollout of the consumer gold account in Nevada resulted in a 78% increase in sales compared to its predecessor, with average balances around $30,000.

Improved Efficiency Ratio

The efficiency ratio improved to 62.2%, demonstrating effective cost management alongside revenue growth.

Negative Updates

Deposit Balances Decline

Average customer deposits in the second quarter were down 1.4% on an annualized linked quarter basis, and total average deposits declined 0.9% due to seasonal customer deposit outflows.

Challenges in CRE Portfolio

Although classified loan balances declined, challenges remain in the commercial real estate portfolio due to economic uncertainty and re-margins.

Pressure on Noninterest Expenses

Adjusted noninterest expenses increased by 3% year-over-year, primarily due to higher incentive compensation accruals.

Company Guidance

During the Zions Bancorp earnings call for the second quarter of fiscal year 2025, the company reported a strong financial performance with net earnings of $243 million, reflecting a 28% improvement over the prior year and a 44% increase from the previous quarter. The net interest margin expanded for the sixth consecutive quarter to 3.17%, driven by lower funding costs and favorable asset mix shifts. The efficiency ratio improved to 62.2%, and average loans grew by 5.6% on an annualized basis compared to the previous quarter. Customer-related noninterest income rose by 7% year-over-year, and adjusted pre-provision net revenue increased by 14% from the prior year. Zions also highlighted a 91% increase in SBA 7(a) program deals and the successful rollout of its consumer gold account, which resulted in a 78% rise in sales with average balances of approximately $30,000. The guidance for the second quarter of 2026 includes moderate increases in net interest income, fee income, and adjusted noninterest expenses, with continued positive operating leverage expected.

Zions Bancorporation National Association Financial Statement Overview

Summary

Zions Bancorporation demonstrates solid profitability with strong EBIT and EBITDA margins. The balance sheet shows moderate leverage, but the low equity ratio could pose a risk. Cash flow generation remains healthy, supporting financial stability despite slight revenue growth challenges.

Income Statement

Positive

The TTM (Trailing-Twelve-Months) data shows a stable gross profit margin of 62.27% and a net profit margin of 16.11%, indicating strong profitability. However, there is a slight decline in revenue growth, which is a concern. EBIT and EBITDA margins are robust at 21.08% and 23.49% respectively, reflecting efficient cost management.

Balance Sheet

Positive

The debt-to-equity ratio is 0.70, indicating a moderate leverage level. The return on equity (ROE) is healthy at 12.66%, demonstrating effective use of equity. However, the equity ratio is somewhat low at 7.19%, suggesting potential risks in terms of financial stability.

Cash Flow

Positive

Free cash flow is positive and shows a stable base with a free cash flow to net income ratio of 1.21. The operating cash flow to net income ratio is 1.33, indicating strong cash conversion efficiency. However, the free cash flow has slightly decreased year over year.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.97B	4.99B	4.62B	3.34B	2.97B	2.94B
Gross Profit	3.10B	3.06B	2.98B	3.03B	3.19B	2.38B
EBITDA	1.17B	1.14B	1.03B	1.26B	1.43B	758.00M
Net Income	801.00M	784.00M	680.00M	907.00M	1.13B	539.00M
Balance Sheet
Total Assets	87.99B	88.78B	87.20B	89.55B	93.20B	81.48B
Cash, Cash Equivalents and Short-Term Investments	12.07B	12.63B	12.50B	13.91B	34.93B	17.35B
Total Debt	4.44B	4.37B	4.54B	11.07B	1.92B	2.91B
Total Liabilities	81.67B	82.65B	81.51B	84.65B	85.74B	73.59B
Stockholders Equity	6.33B	6.12B	5.69B	4.89B	7.46B	7.89B
Cash Flow
Free Cash Flow	972.00M	1.05B	772.00M	1.28B	423.00M	548.00M
Operating Cash Flow	1.07B	1.15B	885.00M	1.47B	629.00M	719.00M
Investing Cash Flow	-32.00M	-1.64B	2.37B	1.41B	-11.58B	-12.20B
Financing Cash Flow	-910.00M	427.00M	-3.20B	-2.81B	11.00B	11.32B

Zions Bancorporation National Association Technical Analysis

Technical Analysis Sentiment

Positive

Last Price56.52

Price Trends

50DMA

54.47

Positive

100DMA

50.49

Positive

200DMA

51.75

Positive

Market Momentum

MACD

1.21

Negative

RSI

57.03

Neutral

STOCH

68.45

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZION, the sentiment is Positive. The current price of 56.52 is above the 20-day moving average (MA) of 55.05, above the 50-day MA of 54.47, and above the 200-day MA of 51.75, indicating a bullish trend. The MACD of 1.21 indicates Negative momentum. The RSI at 57.03 is Neutral, neither overbought nor oversold. The STOCH value of 68.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTFC	80 Outperform	$9.36B	13.22	11.60%	1.39%	4.74%	10.10%
ONB	78 Outperform	$8.94B	13.55	8.00%	2.42%	15.94%	-0.47%
BPOP	78 Outperform	$8.59B	12.33	12.73%	2.17%	6.27%	45.08%
CMA	77 Outperform	$9.07B	13.58	11.07%	4.12%	-8.62%	15.37%
CFR	75 Outperform	$8.38B	13.87	15.34%	3.04%	4.04%	13.30%
ZION	74 Outperform	$8.58B	10.60	13.23%	3.08%	2.64%	32.07%
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%

* Financial Sector Average

Performance Comparison

ZION

Zions Bancorporation National Association

56.52

12.42

28.16%

CMA

Comerica

68.86

16.03

30.34%

CFR

Cullen/Frost Bankers

128.14

22.67

21.49%

ONB

Old National Bancorp Capital

22.82

4.68

25.80%

BPOP

Popular

125.34

30.70

32.44%

WTFC

Wintrust Financial

139.53

35.49

34.11%

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.Date of analysis: Aug 13, 2025