# ZION earnings call intelligence LOPJLB CallCard / temporal rollup · freemium · [stock page](https://www.lopjlb.com/stock/ZION) · [Earnings tab](https://www.lopjlb.com/stock/ZION?tab=earnings) Updated: 2026-07-20T01:23:14 Quarters analyzed: 8 ## Cross-quarter narrative Across the series of earnings CallCards, Zions has moved from completing core technology upgrades and modest NIM expansion in mid‑2024 to a pattern of steady NIM growth, modest loan and deposit gains, and expanding fee‑related revenue through 2026. Early calls highlighted measured loan demand and rising deposit costs, while later quarters show NIM improving for five straight quarters despite a brief dip in early 2026. Credit quality concerns have persisted, shifting from general loan‑risk warnings to specific CRE classifications and an isolated C&I loss. Deposit‑cost competition remains a focus, with migration to non‑interest‑bearing accounts and cost‑reduction initiatives ongoing. M&A activity evolved from the FirstBank branch purchase (still pending) to a California branch acquisition and a pending Basis Investment Group deal, both flagged as at‑risk. Technology investment transitioned from system conversion to AI‑driven automation, now labeled as new initiatives with execution risk. Macro‑economic uncertainty, rate‑risk, and regulatory challenges have been constant themes, while wildfire exposure faded after 2024. Overall, the narrative reflects incremental operational improvements tempered by recurring macro and credit headwinds. ## Latest CallCard · Q1 Zions Bancorp posted 37% YoY earnings growth, modest NIM dip, and highlighted a pending Basis acquisition, small‑business product rollout, and AI initiatives while noting rate‑path uncertainty. **Guidance:** maintained — Management reaffirmed its outlook, expecting 7‑8% YoY net interest income growth for Q1 2027 and moderate increases in fee income and expenses. **Tone:** mgmt 0.6 · Q&A pressure 0.5 · divergence 0.4 Prepared remarks emphasized meaningful year‑over‑year improvement, fee‑income growth and strategic initiatives such as the Basis acquisition and product launches. ### Demand visibility Strong loan growth and SBA momentum; new small‑business deposit product piloted; CRE acquisition pending. Average loans grew 2.4% annualized, SBA 7(a) approvals rank 11th nationally, the "beyond the business" product piloted in CO and AZ with broader rollout planned, and the Basis acquisition aims to expand CRE capabilities. ### Margins / costs NIM slipped 4 bps to 3.27%; loan yields down 14 bps; deposit costs fell 8 bps to 1.68%. Loan‑yield compression was driven by December rate cuts and variable‑rate repricing; deposit cost decline stemmed from lower‑cost deposits replacing wholesale funding, partially offset by a modest seasonal deposit runoff. ### Capital allocation Share repurchases, dividends, and Basis acquisition; investment in AI and product development. $77 million of common shares were repurchased and dividends paid; pending Basis acquisition to enhance CRE franchise; ongoing AI projects for appraisal, document and credit review; rollout of the gold‑account and "beyond the business" products. ### Milestones - **Basis Investment Group acquisition** [at_risk]: Pending regulatory and customary closing approvals. - **Gold account consumer deposit product** [on_track]: Launched H2 2025; companion "beyond the business" piloted in CO and AZ, broader rollout later quarter. - **AI implementation for document and credit review** [new]: Using AI for appraisal, contract and credit exam reviews to boost productivity. - **Positive operating leverage target FY 2026** [on_track]: Guidance expects 100‑150 bps leverage; 270 bps realized this quarter. - **Deposit cost reduction initiative** [on_track]: Deposit costs declined 8 bps to 1.68% as lower‑cost deposits replace wholesale funding. - **SBA lending expansion** [on_track]: Ranked 11th nationally in SBA 7(a) approvals in the first half of the SBA fiscal year. - **Capital markets fee income growth** [on_track]: Capital Markets division driving fee income with a strong pipeline into Q2. - **CRE portfolio management** [on_track]: $13.7 billion CRE portfolio diversified, low nonaccruals and strong loan‑to‑value metrics. ### Fears / risks - **Interest rate risk**: Further rate cuts could compress loan yields and pressure net interest margin. - **Regulatory risk**: Acquisition of Basis programs requires regulatory approvals, creating execution uncertainty. - **AI/technology risk**: Emerging AI could introduce operational challenges or over‑reliance, though management sees limited threat. ## Quarter one-liners - **2026 Q1:** Zions Bancorp posted 37% YoY earnings growth, modest NIM dip, and highlighted a pending Basis acquisition, small‑business product rollout, and AI initiatives while noting rate‑path uncertainty. - **2025 Q4:** Zions Bancorp posted a 19% QoQ earnings rise, expanding net interest margin to 3.31% and strong deposit growth, while guiding modestly higher 2026 results and highlighting fee momentum, AI automation and a cautious M&A stance. - **2025 Q3:** Zions reported modest loan and deposit growth, expanded net interest margin and higher credit provision, while emphasizing the isolated nature of a recent C&I loss and a moderate outlook for Q3 2026. - **2025 Q2:** Zions Q2 2025: net earnings $243M (+28% YoY), NIM 3.17% (6th straight quarterly rise), loans +5.6% annualized, CRE classifieds down $196M; outlook for Q2 2026 moderately higher NII, fees, expenses, slight loan growth with positive operating leverage. Tariff concerns abated but economic slowing noted - **2025 Q1:** Zions Bancorp posted solid Q1 2025 earnings with modest loan growth, improved net interest margin, low charge‑offs and a completed $630M deposit acquisition, while flagging economic uncertainty and maintaining cautious guidance for Q1 2026. - **2024 Q4:** Zions Bancorporation posted solid Q4 2024 earnings with expanding net interest margin, modest loan growth, rising classified CRE loans, and an optimistic 2025 outlook despite wildfire and regulatory headwinds. - **2024 Q3:** Zions posted modest earnings growth, expanded net interest margin and deposits, announced a FirstBank branch acquisition pending approval, and highlighted credit‑quality pressures and rate‑risk uncertainty. - **2024 Q2:** Zions completed its core system conversion, saw modest NIM expansion, measured loan growth amid higher rates, and is investing in digital and capital‑markets while monitoring deposit costs and credit risk. ## Theme arcs - **Net interest margin expansion** (improving): NIM grew sequentially for five quarters, briefly slipped in Q1 2026 but remains above prior levels. - **Loan growth** (stable): Loan balances have risen modestly each quarter, with annualized growth around 2‑5%. - **Deposit cost pressure** (deteriorating): Rising deposit costs and competition have pressured NII, prompting migration initiatives. - **Credit quality** (deteriorating): Classified CRE loans increased, with specific multifamily and industrial issues and an isolated C&I loss. - **Technology and AI investment** (new): Shift from core system conversion to AI automation and document review, flagged as execution risk. - **M&A activity** (stable): FirstBank acquisition pending, California branch acquisition ongoing, Basis deal at risk. ## Fear persistence - **Interest rate / macro uncertainty** [recurring]: Consistently cited as top concern across all quarters. - **Deposit cost pressure** [recurring]: Repeatedly noted as compressing NIM. - **Credit risk / CRE classifications** [recurring]: Ongoing increase in classified CRE loans and isolated C&I loss. - **Technology expense / AI risk** [recurring]: From cost management to AI implementation risk. - **Regulatory risk** [recurring]: CFPB, Basel III, and acquisition approvals repeatedly mentioned. - **Wildfire exposure** [resolved]: Only mentioned in Q4 2024 and not thereafter. - **Real estate refinancing / CRE slowdown** [recurring]: Headwinds in multifamily, industrial and office leasing noted throughout. - **Tariff and economic uncertainty** [recurring]: Appears in 2025 Q1, Q2, Q3 calls. - **AI implementation risk** [new]: First appears in Q1 2026. ## Guidance path 2024 Q2:maintained → 2024 Q3:maintained → 2024 Q4:maintained → 2025 Q1:maintained → 2025 Q2:vague → 2025 Q3:raised → 2025 Q4:maintained → 2026 Q1:maintained --- Research context only. Not personalized investment advice. API: `GET /bff/api/bigfive/earnings-intel/ZION`