Zions Bancorporation’s third quarter results met market expectations with stronger-than-anticipated revenue growth and improved net interest margin, supported by a favorable shift in asset mix and ongoing deposit stability. Management pointed to momentum in core earnings, highlighting expansion in net interest margin for the seventh straight quarter and cost discipline that led to an improved efficiency ratio. However, the quarter included a notable credit event: a $50 million charge-off tied to two related commercial loans, which management emphasized as an isolated incident after internal and external portfolio reviews. CEO Harris Simmons acknowledged, “We have no further exposure related to these borrowers or guarantors,” underscoring confidence in the bank’s broader credit quality.
Is now the time to buy ZION? Find out in our full research report (it’s free for active Edge members).
Zions Bancorporation (ZION) Q3 CY2025 Highlights:
- Revenue: $861 million vs analyst estimates of $838.2 million (8.7% year-on-year growth, 2.7% beat)
- Adjusted EPS: $1.54 vs analyst estimates of $1.39 (10.5% beat)
- Adjusted Operating Income: $303 million vs analyst estimates of $312.9 million (35.2% margin, 3.2% miss)
- Market Capitalization: $7.84 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Zions Bancorporation’s Q3 Earnings Call
- Manan Gosalia (Morgan Stanley) asked about the isolated nature of the $50 million charge-off and the internal review process. Chief Credit Officer Derek Steward said, “We’ve gone through the portfolio, and we think it’s an isolated incident,” adding that no similar exposures were found.
- David Rochester (Cantor) inquired about the drivers of net interest income growth, specifically fixed asset repricing. CFO Ryan Richards detailed that ongoing loan and securities repricing would contribute 2–3 basis points to asset yields each quarter.
- Kenneth Usdin (Autonomous Research) questioned the sustainability and scale of positive operating leverage. Richards responded that while precise targets are still being refined, the company expects continued positive operating leverage, driven by revenue outpacing expenses.
- Benjamin Gerlinger (Citigroup) asked whether recent M&A in the regional bank space would cause Zions to pursue acquisitions. CEO Harris Simmons said the company is open to small, strategic deals but feels no compulsion to act and is sensitive to dilution risks.
- Peter Winter (D.A. Davidson) sought details on expense growth in light of recent investments. Simmons stated that while investment in marketing and new hires would continue, efforts are underway to offset these increases with efficiency gains.
Catalysts in Upcoming Quarters
In future quarters, our analysts will be monitoring (1) the pace and sustainability of commercial loan growth, especially in C&I and SBA lending; (2) the impact of deposit migration on funding costs and noninterest income; and (3) progress in managing credit quality, including the resolution of the recent charge-off event. Additionally, we will track the effectiveness of continued investments in technology and marketing as drivers of new client acquisition and fee income diversification.
Zions Bancorporation currently trades at $53.00, up from $52 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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