Zions Bancorporation, National Association (ZION) Stock Analysis

Zions Bancorporation is a Salt Lake City-based regional bank founded in 1873, operating seven locally managed banking franchises across 11 Western and Southwestern states. Its relationship-led model combines community-bank decision-making with super-regional technology, capital markets, and balance-sheet capacity. Commercial and middle-market customers generate approximately two-thirds of core revenue, while capital markets, treasury management, wealth management, and retail fees diversify the traditional spread-lending model. **Core earnings are improving, but reported Q2 2026 EPS was inflated by one-time gains.** Net earnings applicable to common shareholders rose to $452 million, or $3.05 per diluted share, but included $252 million of net equity investment gains, including a $215 million Visa sale gain. Adjusted EPS increased 10% year over year to $1.74, beating the $1.58 consensus. NII grew 4% to $677 million, while NIM was 3.27%, below the $685.34 million and 3.35% expectations. The stock trades at 11.23x trailing P/E and 1.73x P/TBV versus approximately 13.4x peer P/E. Management targets 100–150 basis points of positive operating leverage in 2026, and potential Basel III RWA relief could add approximately 93 basis points to CET1 capital. The principal near-term debate is whether NIM and deposits stabilize enough to unlock the discount.