-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
ZION posted strong Q1 2026 results, with GAAP EPS of $1.56 vs $1.13 prior year, beating consensus by $0.13. Credit quality was exceptional, with provisions flipping to a $7M benefit, net charge-offs at just 3 bps, and nonperforming assets at 0.48%, the lowest in seven quarters. Our belief that 2025 credit challenges would not persist into 2026 received validation as ZION delivered some of the industry's best credit metrics. Net interest income grew 6% Y/Y, with margin expansion to 3.27% from 3.10% prior year, though declining 4 bps sequentially due to lower earning asset yields. Balance sheet growth was solid with loans increasing 2% to $61.3B and customer deposits growing 3% to $73.1B. Fee income performance was strong, with customer-related noninterest income up 9% due to loan-related fees (+35%) and retail banking fees (+18%). We are not overly concerned with the sequential margin decline as similar trends were observed across the industry.