Zions Bancorporation, N.A., which serves customers mainly in the western United States, reported higher third-quarter earnings as loan charge-offs fell sharply while loans and leases outstanding barely changed from June.
For the quarter ended Sept. 30, 2026, net earnings applicable to common shareholders rose to $262 million from $221 million a year earlier. Diluted earnings per share increased to $1.78 from $1.48.
Chairman and CEO Harris H. Simmons attributed much of the improvement to credit quality. Net loan charge-offs fell to $3 million from $56 million a year earlier; $50 million of the year-earlier amount involved two related commercial borrowers. Zions recorded an $8 million benefit from its provision for credit losses, compared with a $49 million expense a year earlier.
Loans and leases outstanding totaled $62.5 billion at Sept. 30, up 4% from a year earlier but essentially unchanged from June 30. Simmons cited faster loan payoffs and competition as reasons the balance did not grow during the quarter. He put growth in customer deposits from second-quarter levels at an annualized rate of almost 10%.
Net interest income increased 2% from a year earlier to $684 million, though net interest margin narrowed to 3.23% from 3.28%. Customer-related noninterest income rose 18% to $192 million; Zions put growth at 5% on an adjusted basis. Noninterest expense climbed 5% to $553 million.
Earnings applicable to common shareholders were lower than the second quarter’s $452 million. That quarter included $269 million in pre-tax net securities gains, primarily from the sale of Visa Class B-1 shares. Zions estimated its common equity Tier 1 capital ratio at 11.8%, up from 11.3% a year earlier.
Simmons said short- and medium-term interest rates began rising in September. He expects the bank’s balance sheet to support stronger net interest income in a higher-rate environment and said noninterest income should continue improving into next year.
