Zions Bancorporation posted stronger-than-expected third-quarter profit after Monday's closing bell, reporting diluted earnings of $1.78 per share against a Wall Street consensus near $1.64-$1.66, according to the company's own earnings release filed with the SEC. Net earnings available to common shareholders came in at $262 million, up 19% from $221 million a year earlier.

The Salt Lake City-based regional lender, which operates under brands including Zions Bank, Amegy Bank and California Bank & Trust, also raised its quarterly common dividend to $0.48 per share from $0.45 and repurchased 1.1 million shares for $75 million during the quarter — its first buyback activity in over a year, the filing shows.

Credit quality nearly spotless

The standout number was credit quality. Zions recorded an $8 million benefit to its provision for credit losses, reversing a $49 million expense a year ago, as net charge-offs collapsed to just $3 million — an annualized charge-off rate of 0.02%, down from 0.37% in the third quarter of 2025. Classified loans fell to 3.40% of total loans from 4.00%. An Associated Press earnings snapshot independently confirmed the EPS beat against Zacks Investment Research's consensus estimate.

Net interest income rose 2% to $684 million, though the net interest margin narrowed slightly to 3.23% from 3.28%. Average customer deposits grew 8.8% on an annualized basis from the prior quarter, and capital-markets fee income — boosted by a multifamily-lending acquisition completed in July — hit an annualized $136 million, according to an earnings-call recap from Investing.com. The bank's estimated CET1 capital ratio, a key regulatory cushion, improved to 11.8% from 11.3%, and tangible book value per share rose 13% to $43.50.

"THIRD QUARTER EARNINGS PER SHARE INCREASED 20% TO $1.78, UP FROM $1.48 A YEAR AGO," said Chairman and CEO Harris H. Simmons, who pointed to the bank's moderate asset sensitivity as a tailwind if interest rates stay elevated.

Shares traded modestly higher after hours, up roughly 0.98% to $63.76, following a $63.14 regular-session close within the stock's 52-week range of $48.50 to $73.34 — a muted reaction given the size of the beat, reflecting a market that had already priced in a strong quarter from regional lenders this earnings season.

Looking ahead, Zions offered a multi-year framework rather than single-quarter guidance: management is modeling loan growth of 2% to 4%, net interest income growth of 8% to 12%, and noninterest expense growth of 4% to 6% through the next several quarters, assuming roughly three additional rate moves by the end of 2027. CFO Ryan Richards said the bank sees scenarios that could sustain a mid-3% net interest margin. Investors will get a broader read on regional-bank health this week as more mid-sized lenders report third-quarter results.