Zions Bancorporation Delivers Strong Q3 2026 Results, Bolsters Multifamily Lending Capabilities
Zions Bancorporation, a leading financial institution, has released its third quarter 2026 results, showcasing a significant year-over-year earnings improvement and continued progress on strategic priorities. The company's Chairman and Chief Executive Officer Harris Simmons highlighted the positive financial results during an investor call, citing growth in net interest income and customer-related non-interest income, modest loan growth, and exceptional credit performance.
According to Simmons, Zions Bancorporation reported a net earnings available to common of $262 million, or $1.78 per share, representing a 20% increase compared to the same period last year. This improvement was driven by a 3.7% annualized growth in average loans, led by commercial lending, and an 8.8% annualized growth in average customer deposits.
The company's net interest margin stood at 3.23%, down four basis points from the prior quarter but still strong compared to the same period last year. Credit losses were modest, with a 2-basis-point annualized ratio of average loans. The adjusted pre-provision net revenue increased by 2% from the previous quarter, reflecting improvement in adjusted taxable equivalent revenue that more than offset a modest increase in adjusted non-interest expense.
Chief Financial Officer Ryan Richards emphasized the importance of fee income growth during the call, highlighting the company's capital markets division as a key driver. Since launching the business in 2020, Zions Bancorporation has nearly doubled its annual fee income contribution by investing in talent, technology, and product capabilities.
Notably, the company acquired Basis Investment Group's multifamily agency lending business during the third quarter, marking an important step in building a highly differentiated multifamily franchise. This acquisition provides clients with a single source of financing solutions across market rate, affordable construction, bridge, agency, and CMBS products. With this addition, Zions Bancorporation becomes one of only four banks in the country to combine direct access to both Fannie Mae Delegated Underwriting and Servicing and Freddie Mac's Optigo programs.
Chief Credit Officer Derek Steward highlighted the exceptional credit performance during the quarter, with credit losses remaining modest. The company's strong capital markets division and strategic acquisitions position Zions Bancorporation for continued growth and success in the financial services industry.
