Zions Bancorporation Shines in Q2 2026: Strong Earnings, Strategic Growth, and Exciting Acquisitions
Zions Bancorporation, a leading financial institution, has reported impressive second-quarter 2026 earnings, marking a significant year-over-year improvement. The company's net earnings available to common shareholders reached $452 million, or $3.05 per share, including exceptional items such as a pre-tax gain on the liquidation of Visa Class B-1 shares and an unrealized pre-tax gain on an SBIC investment.
Excluding these items, earnings per share totaled $1.74 compared to $1.58 in last year's first quarter. The company's capital markets division continues to drive fee income growth, with a focus on talent, technology, and product capabilities. Notably, Zions Bancorporation has announced an agreement with Basis Investment Group to acquire its Fannie Mae and Freddie Mac multifamily lending business line, related mortgage servicing rights, and an experienced team.
The transaction is expected to close in the third quarter, with potential enhancements to the company's ability to serve commercial real estate clients across the Western U.S. and beyond. As this acquisition has not yet closed, any revenue or other financial contribution from the business is not included in Zions Bancorporation's current outlook or forecast.
Additionally, the company continues to invest in its consumer and small business franchises. In the second quarter, an upgraded feature-rich deposit and payments account for small businesses was introduced, known as the Business Beyond Account. This account offers clients more complex cash flow management and money movement capabilities, complementing the Gold Account launched for consumers last year.
With over 10,000 accounts opened between Gold and Business Beyond so far this year, Zions Bancorporation is pleased with the early results of its campaign. On a quarter-over-quarter basis, adjusted quarterly earnings per share grew 10% to $1.74 from $1.58 a year ago due to growth in customer-related non-interest income, modest loan growth and margin improvement, expense discipline, and solid credit performance.
The net interest margin was stable at 3.27%, up 10 basis points from a year ago, while average loans grew 4.7% on an annualized basis, led by commercial lending. Average customer deposits also grew 4.0%. Credit losses were modest at six basis points annualized of average loans.
The company's recent history shows a positive trend in earnings performance, with the provision for loan losses having a minimal impact on quarterly results. As Zions Bancorporation continues to navigate its strategic priorities and capitalize on emerging opportunities, investors are likely to remain interested in the company's future prospects."/>
