ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 6, 2026
ZION$64.76-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0000109380-26-000083
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0000109380-26-000111
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 318 previous paragraphs and 318 current paragraphs.
189 unchanged; 91 reworded; 34 added; 38 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 40 previous and 41 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (34)
Current report
•Changes in the quality, composition, and concentrations of our loan and investment securities portfolios;
Current report
•Changes in economic, political, and market conditions nationally and within our key markets in the Western United States, including changes in interest rates, inflation, monetary policy, fiscal, trade, and tax policies, government actions, and other macroeconomic factors that affect our financial results, customer activity, credit demand, and borrower performance;
Current report
•Changes in deposit levels and composition, access to wholesale funding, and the availability and cost of liquidity sources;
Current report
•Competition from traditional and nonbank financial service providers, including credit unions, financial technology companies (“fintechs”), private credit funds, special-purpose charters, and other new and evolving industry participants;
Current report
•Geopolitical developments, including wars, global conflicts, and environmental or catastrophic events, such as fires, natural disasters, pandemics, and other disruptions that may affect our operations and customers;
Current report
•Increased demand for and risks associated with the adoption and integration of emerging technologies and products, including tokenized deposits, stablecoins, blockchain, and artificial intelligence (“AI”);
Current report
•Our ability to develop, maintain, and secure resilient technology systems and effective controls to detect and respond to fraud, cybersecurity threats, data breaches, and other operational disruptions, including increasingly sophisticated AI-enabled attacks;
Current report
•Our ability to effectively oversee third party providers and mitigate risks arising from supplier performance failures, cybersecurity incidents, technology disruptions, data breaches, or other operational deficiencies;
Current report
•The impact of existing and proposed laws and regulations, supervisory expectations, and the outcome of legal or regulatory proceedings;
Current report
•Adverse developments affecting the banking industry that may negatively impact depositor, investor, or market confidence and public opinion; and
Current report
•Other assumptions, risks, and uncertainties described in this quarterly report and our other SEC filings.
Current report
Second Quarter 2026 Financial Performance
Current report
Noninterest income benefited from $252 million of pre-tax net gains, which contributed approximately $1.31 per diluted share (after-tax) and resulted in reported diluted EPS of $3.05. These gains included a $215 million gain from the sale of Visa Class B-1 shares and $37 million of net unrealized gains from Small Business Investment Company (“SBIC”) investments.
Current report
In the prior year quarter, noninterest income included $9 million of net unrealized gains from SBIC investments, which contributed approximately $0.05 per diluted share (after-tax) and resulted in reported diluted EPS of $1.63. These favorable items were partially offset by higher noninterest expense. The efficiency ratio remained stable at 62.2%, unchanged from the prior year quarter, and improved from 65.0% in the preceding quarter.
Current report
◦Average interest-bearing liabilities declined $2.1 billion, or 4%, compared with the prior year period. This decline was primarily attributable to a $2.7 billion reduction in average borrowed funds, largely reflecting lower short-term borrowings. The decrease was partially offset by an increase in average long-term debt, resulting from senior note issuances over the past year, as well as a $571 million increase in average interest-bearing deposits.
Current report
•Noncustomer-related noninterest income increased $252 million, primarily driven by the aforementioned notable gains.
Current report
•Total deposits increased $2.8 billion, or 4%, compared with the prior year quarter, primarily driven by a $2.0 billion increase in interest-bearing deposits, largely reflecting the impact of focused deposit growth initiatives. Customer deposits, excluding brokered deposits, totaled $72.7 billion, compared with $69.9 billion.
Current report
On July 31, 2026, we completed our previously disclosed acquisition of Basis Multifamily Finance I, LLC, the agency lending platform and subsidiary of Basis Investment Group. The acquisition includes the platform’s experienced team, capabilities, and associated mortgage servicing rights. This transaction expands our product suite through participation in the Fannie Mae DUS® program and the Freddie Mac Optigo® Conventional and Small Balance Loan programs, enhancing our ability to meet the financing needs of multifamily owners, operators, and developers nationwide, and further strengthens our commercial real estate and capital markets businesses.
Current report
Net interest income accounted for 60% of net revenue (defined as the sum of net interest income and noninterest income) in the second quarter of 2026, compared with 77% in the second quarter of 2025. The decline primarily reflects the impact of previously noted pre-tax net gains.
Current report
Yields on Interest-earning Assets
Current report
Average interest-bearing liabilities decreased $2.1 billion, or 4%, from the prior year quarter, reflecting lower average borrowed funds, partially offset by increases in average long-term debt and interest-bearing deposits.
Current report
Effective in the first quarter of 2026, we changed our accounting policy to present qualifying derivative assets and liabilities, along with the associated rights to reclaim or obligations to return cash collateral, on a net basis for all eligible arrangements rather than on a gross basis. The average balance of other short-term borrowings is presented net of derivative cash collateral received of $429 million and $327 million for the three and six months ended June 30, 2026, respectively, while the related interest expense is recorded on a gross basis. As a result, the calculated yield on this line item increased by approximately 66 bps and 47 bps for the three and six months ended June 30, 2026, respectively. There was no impact on average balances from such netting for the three and six months ended June 30, 2025.
Current report
2 Derivative netting increased the calculated yield by approximately 66 bps for the three months ended June 30, 2026; there was no comparable impact in 2025. See discussion above for more information.
Current report
2 Derivative netting increased the calculated yield by approximately 47 bps for the six months ended June 30, 2026; there was no comparable impact in 2025. See discussion above for more information.
Current report
Noncustomer-related noninterest income increased $252 million, compared with the prior year period, primarily driven by a $215 million gain on the sale of Class B-1 shares of Visa, Inc., as well as $44 million in unrealized gains within the SBIC investment portfolio. In the prior year period, we recognized an $11 million unrealized gain related to the successful completion of the initial public offering of one of our SBIC investments.
Current report
Technology, telecom, and information processing expense increased $7 million, driven by higher application software, licensing, and maintenance costs. Credit-related expense rose $4 million, primarily due to increased loan-related legal costs, while occupancy and equipment expense increased $4 million, mainly reflecting higher rental and building maintenance costs. Other noninterest expense increased $2 million, largely due to a higher success fee accrual associated with SBIC investments and higher legal reserves in the prior year quarter, partially offset by reductions in other miscellaneous expenses.
Current report
These increases were partially offset by a $13 million decline in deposit insurance and regulatory expense, driven by a $6 million decrease from an updated estimate of the FDIC special assessment, as well as higher FDIC assessment costs in the prior year quarter associated with the level of classified loans.
Current report
Total deposits increased $1.0 billion, or 1%, from December 31, 2025, reflecting growth in both interest-bearing and noninterest-bearing deposits. Growth in interest-bearing deposits was driven by focused deposit-gathering initiatives, while noninterest-bearing demand deposits increased due to continued growth in more granular depositor balances.
Current report
NDFI loan balances increased during the first six months of 2026, primarily due to a second-quarter reclassification of approximately $366 million of commercial loans to the NDFI category based on industry and purpose.
Current report
Subsequent to quarter-end, on July 31, 2026, we completed our previously disclosed acquisition of Basis Multifamily Finance I, LLC, including its team, capabilities, and related mortgage servicing rights. The acquisition expands our multifamily lending capabilities and strengthens our commercial real estate and capital markets businesses. For more information, see “Executive Summary” and the Subsequent Events section in Note 1 of the Notes to Consolidated Financial Statements.
Current report
Total shareholders’ equity increased $501 million, or 7%, to $7.7 billion at June 30, 2026, compared with $7.2 billion at December 31, 2025. The increase reflected a $124 million decline in common stock and additional paid-in capital, primarily due to common share repurchases.
Current report
1 Excluding $252 million of pre-tax net gains ($199 million after tax), return on average common equity and return on average tangible common equity for the three months ended June 30, 2026 would have been approximately 14.0%, and 16.6%, respectively.
Current report
1 Excluding $252 million of pre-tax net gains ($199 million after tax), return on average tangible common equity for the three months ended June 30, 2026 would have been approximately 16.6%.
Current report
1 Excluding the $15 million charitable contribution, adjusted noninterest expense for the year ended December 31, 2025 would have been $2.11 billion, resulting in an efficiency ratio of 62.2%.
Removed paragraphs (38)
Previous report
•The quality and composition of our loan portfolio, investment securities, and deposits;
Previous report
•Changes in general industry, political, and economic conditions, including increases in the national debt, elevated or persistent inflation, economic slowdowns or recessions, and other macroeconomic challenges; changes in interest rates or reference rates, which could negatively impact our revenues and expenses, the valuation and performance of our assets and liabilities, and the availability and cost of capital and liquidity;
Previous report
•Political developments, including government shutdowns and other significant disruptions and changes in the funding, size, scope, and effectiveness of the government and its agencies and services;
Previous report
•The effects of newly enacted and proposed regulations affecting us and the banking industry, as well as changes and uncertainties in the interpretation, enforcement, and applicability of laws and fiscal, monetary, regulatory, trade, and tax policies;
Previous report
•Actions taken by governments, agencies, central banks, and similar organizations, including those that result in decreases in revenue, increases in regulatory bank fees, insurance assessments, and capital standards; and other regulatory requirements;
Previous report
•Evolving trade policies and disputes, including proposed and implemented tariffs, and the resulting economic uncertainty that may adversely affect supply chains, operating costs, and revenues for both us and our customers;
Previous report
•Judicial, regulatory, and administrative inquiries, investigations, examinations or proceedings and the outcomes thereof that create uncertainty for, or are adverse to, us or the banking industry;
Previous report
•The growing presence of credit unions, financial technology companies (“fintechs”), and other emerging competitors within the financial services industry, including in the markets in which we operate;
Previous report
•Our ability to innovate and address competitive pressures and other factors that may affect aspects of our business, such as pricing, the relevance of and demand for our products and services, and our ability to recruit and retain talent;
Previous report
•The potential for both positive and disruptive impacts of emerging technologies, including stablecoins and other digital currencies, tokenized deposits, blockchain, artificial intelligence (“AI”), quantum computing, and related innovations affecting both us and the banking industry;
Previous report
•Our ability to develop and maintain technology and information security systems, along with effective controls designed to guard against fraud, cybersecurity, and privacy risks and related incidents, particularly given the accelerating pace at which threat actors are developing and deploying increasingly sophisticated and targeted tactics against the financial services industry;
Previous report
•Our ability to provide adequate oversight of our suppliers to help us prevent or mitigate effects upon us and our customers of inadequate performance, systems failures, or cyber and other incidents by, or affecting, third parties upon whom we rely for the delivery of various products and services;
Previous report
•The effects of wars, geopolitical conflicts, and other local, national, or international disasters, crises, or conflicts that may occur in the future;
Previous report
•Natural disasters, pandemics, wildfires, catastrophic events, and other emergencies and incidents, and their impact on our operations, our customers’ business, and the communities we serve, including the increasing difficulty and expense of obtaining property, auto, business, and other insurance products;
Previous report
•Diverging and evolving policy, legal, regulatory, and political developments—combined with differing stakeholder perspectives related to governance, environmental, and social matters—may subject us to conflicting requirements and expectations;
Previous report
•The possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and shareholders’ equity;
Previous report
•The impact of bank closures or adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks;
Previous report
•Adverse news and other expressions of negative public opinion—whether directed at us, other financial institutions, the banking industry, or the broader market—that may adversely affect our reputation and the industry more broadly.
Previous report
First Quarter 2026 Financial Performance
Previous report
◦Average interest-bearing liabilities declined $2.7 billion, or 5%, largely due to decreases in average interest-bearing deposits and average borrowed funds, partially offset by an increase in average long-term debt, driven by recent issuances of senior notes.
Previous report
•Noncustomer-related noninterest income increased $2 million, or 15%, mainly due to valuation adjustments on servicing rights and gains on the sale of fixed assets, partially offset by lower securities gains.
Previous report
•Total deposits increased $1.2 billion, or 2%. Noninterest-bearing demand deposits increased primarily reflecting the migration of a consumer interest-bearing product into a new noninterest-bearing offering. This increase was partially offset by a decline in interest-bearing deposits, largely driven by a reduction in brokered deposits. Customer deposits, excluding brokered deposits, totaled $73.1 billion, compared with $70.9 billion.
Previous report
During the first quarter of 2026, we entered into an agreement to acquire the agency lending business of Basis Multifamily Finance I, LLC, a subsidiary of Basis Investment Group, subject to customary closing conditions and regulatory approvals. This acquisition will expand our ability to deliver permanent financing solutions to multifamily housing clients through our enhanced capabilities as an originator, underwriter, and servicer of government-sponsored agency loans, including the Fannie Mae DUS® program and the Freddie Mac Optigo® Conventional and Small Balance Loan programs. The transaction is expected to strengthen our capital markets franchise and further enhance our ability to serve commercial real estate clients across the Western United States and other key markets.
Previous report
Net interest income accounted for 78% of our net revenue (the sum of net interest income and noninterest income) in both the first quarters of 2026 and 2025. It increased $38 million, or 6%, during the three months ended March 31, 2026, compared with the same prior year period. This increase was further supported by an improved mix of average interest-earning assets, driven by growth in higher-yielding loans and a reduction in lower-yielding investment securities and money market investments. As a result, the net interest margin increased to 3.27%, compared with 3.10%.
Previous report
Average interest-bearing liabilities decreased $2.7 billion, or 5%, from the prior year quarter, as declines in average interest-bearing deposits and average borrowed funds were partially offset by an increase in average long-term debt.
Previous report
2 Net of unamortized purchase premiums, discounts, and deferred loan fees and costs.
Previous report
Noncustomer-related noninterest income increased $2 million, or 15%, compared with the prior year period, primarily due to valuation adjustments on servicing rights and gains on the sale of fixed assets. These increases were partially offset by lower securities gains in our Small Business Investment Company (“SBIC”) investment portfolio relative to the prior year quarter.
Previous report
Our municipal loans and securities are primarily concentrated within our geographic footprint. At both March 31, 2026 and December 31, 2025, approximately $2 million of municipal loans and leases were classified as nonaccrual. These nonaccrual loans relate to private commercial entities utilizing a pass-through municipal structure.
Previous report
Total deposits increased $1.3 billion, or 2%, from December 31, 2025, driven by higher noninterest-bearing demand deposits. The increase was primarily attributable to seasonal large commercial deposits, complemented by continued growth in more granular depositor balances.
Previous report
Our NDFI portfolio is diversified across various lending segments and asset classes, including:
Previous report
•Mortgage credit intermediaries — Loans to mortgage companies engaged in residential or commercial mortgage origination and servicing; special purpose entities supporting mortgage-related securitization activities, such as real estate investment trusts (“REITs”) and collateralized debt obligations.
Previous report
•Business credit intermediaries— Loans to finance companies, direct lenders, private debt funds, equipment leasing companies, business development companies (“BDCs”), SBICs, senior loan funds, and other nonbank business lenders.
Previous report
•Private equity funds— Capital call commitment and subscription-based facilities extended to private equity, venture capital, and other general partnership funds.
Previous report
•Consumer credit intermediaries — Loans to nonbank consumer secured and unsecured lending platforms, as well as special purposes entities, finance companies, direct lenders, private debt funds, equipment leasing companies, or other financial intermediaries whose underlying assets primarily consist of consumer loans.
Previous report
•Other — Loans to insurance companies, investment banks, broker-dealers, publicly listed investment funds, hedge funds, family offices, and other investment firms and financial vehicles.
Previous report
During the first quarter of 2026, we entered into an agreement to acquire the agency lending business of Basis Multifamily Finance I, LLC that will expand our ability to deliver permanent financing solutions to multifamily housing clients through our enhanced capabilities as an originator, underwriter, and servicer of government-sponsored agency loans. For more information, see “Executive Summary” on page 6.
Previous report
1 Excluding the effect of AOCI from average tangible common equity would result in associated returns of 11.8%, 13.3%, and 9.2% for the periods presented, respectively.
Previous report
1 Effective in the first quarter of 2025, capital markets fees and income includes the net CVA, which was previously disclosed under noncustomer-related noninterest income as fair value and nonhedge derivative income.
Reworded paragraphs (91)
Previous wording
Forward-looking statements are not guarantees and should not be relied upon as representing management’s views as of any subsequent date. Actual results and outcomes may differ materially from those presented. Although the following list is not comprehensive, key factors that may cause material differences include:
Current wording
Forward-looking statements are not guarantees and should not be relied upon as representing management’s views as of any subsequent date. Actual results and outcomes may differ materially from those expressed or implied. Factors that could cause such differences include, but are not limited to:
Previous wording
•Our ability to complete projects and initiatives and execute our strategic plans, manage our risks, control compensation and other expenses, and achieve our business objectives;
Current wording
•Our ability to execute strategic initiatives, manage expenses, attract and retain talent, and achieve our business objectives;
Previous wording
•Volatility in securities and capital markets behavior, including changes in market liquidity and our ability to access funding or raise capital on favorable terms;
Current wording
•Changes in accounting standards, asset valuations and impairments, and our ability to access capital and funding markets on favorable terms;
Previous wording
Comparisons noted below are calculated for the current quarter versus the same prior year period, unless otherwise specified. Growth rates of 100% or more are considered not meaningful (“NM”) as they typically reflect a low starting point.
Current wording
Comparisons discussed below are based on the current quarter relative to the same prior year period, unless otherwise noted. Explanations for changes in the current year-to-date period compared with the same prior year period are generally consistent with the quarter-to-date discussion, unless otherwise indicated. Growth rates of 100% or greater are considered not meaningful (“NM”), as they typically reflect a low starting point.
Previous wording
Our financial performance in the first quarter of 2026 demonstrated strong year-over-year growth in net earnings applicable to common shareholders, diluted earnings per share (“EPS”), and adjusted pre-provision net revenue (“PPNR”). Diluted EPS increased to $1.56 from $1.13 in the first quarter of 2025, driven by higher net interest income and noninterest income, along with a lower provision for credit losses. These favorable factors were partially offset by higher noninterest expense. The efficiency ratio improved to 65.0% from 66.6% in the prior year quarter, reflecting positive operating leverage. The efficiency ratio was 62.3% in the prior quarter, primarily due to higher seasonal compensation costs.
Current wording
Our financial performance in the second quarter of 2026 reflected meaningful year-over-year improvement in net earnings applicable to common shareholders, diluted earnings per share (“EPS”), and adjusted pre-provision net revenue (“PPNR”). Diluted EPS increased to $3.05 from $1.63 in the second quarter of 2025, primarily driven by continued growth in noninterest income, including two notable gains, as well as higher net interest income.
Previous wording
Average interest-earning assets increased $399 million, or less than 1%, from the prior year quarter, as an increase in average loans and leases was partially offset by declines in average investment securities and average money market investments.
Current wording
◦Average interest-earning assets increased $788 million, or 1%, compared with the prior year period. This was driven by a $1.4 billion increase in average loans and leases, partially offset by a $708 million decline in average investment securities.
Previous wording
•The provision for credit losses was negative $7 million, compared with positive $18 million in the prior year period, primarily due to lower reserves associated with commercial real estate (“CRE”) portfolio-specific risks.
Current wording
•The provision for credit losses was $3 million, compared with negative $1 million in the prior year period.
Previous wording
•Customer-related noninterest income increased $14 million, or 9%, reflecting broad-based growth across multiple revenue streams, primarily driven by higher loan-related fees and income, as well as growth in retail and business banking fees and commercial account fees.
Current wording
•Customer-related noninterest income increased $18 million, or 11%, reflecting broad-based growth across multiple revenue streams. This increase was largely due to higher capital markets fees and income, as well as growth in loan-related fees and income and commercial account fees.
Previous wording
•Noninterest expense increased $24 million, or 4%, primarily due to higher incentive compensation accruals reflecting improved profitability, as well as increased base salaries and employee benefits costs. Additional increases in professional and legal services and in technology, telecom, and information processing expenses were partially offset by a decline in deposit insurance and regulatory expense.
Current wording
•Noninterest expense increased $24 million, or 5%, primarily due to higher professional and legal services expense, increased salary and employee benefit costs reflecting higher incentive compensation, and increased technology, telecom, and information processing expenses. Additional increases in credit-related and occupancy and equipment costs were partially offset by a decline in deposit insurance and regulatory expense, reflecting a lower Federal Deposit Insurance Corporation (“FDIC”) special assessment estimate and higher prior-year costs.
Previous wording
•Total loans and leases increased $1.4 billion, or 2%, primarily driven by growth in the commercial and industrial loan portfolio and the consumer home equity credit line (“HECL”) portfolio.
Current wording
•Total loans and leases increased $1.7 billion, or 3%, resulting from growth in the commercial and industrial portfolio and the term commercial real estate portfolio.
Previous wording
◦Net loan and lease charge-offs totaled $4 million, or 0.03% of average loans and leases annualized, compared with $16 million, or 0.11%, in the prior year quarter.
Current wording
◦Net loan and lease charge-offs totaled $9 million, or 0.06% of average loans and leases annualized, compared with $10 million, or 0.07%, in the prior year quarter.
Previous wording
◦Nonperforming assets totaled $292 million, or 0.48% of total loans and leases and other real estate owned, compared with $307 million, or 0.51%. The decrease was primarily attributable to improvement in the commercial and industrial loan portfolio. Classified loans totaled $2.3 billion, or 3.80% of total loans and leases, compared with $2.9 billion, or 4.82%, in the prior year quarter.
Current wording
◦Nonperforming assets totaled $298 million, or 0.48% of total loans and leases and other real estate owned, compared with $313 million, or 0.51%. The decrease was primarily attributable to improvement in the term commercial real estate loan portfolio. Classified loans totaled $2.3 billion, or 3.72% of total loans and leases, compared with $2.7 billion, or 4.43%, in the prior year quarter.
Previous wording
•Total borrowed funds decreased $1.8 billion, or 44%, compared with the prior year quarter. The decrease was driven by a reduction in short-term Federal Home Loan Bank (“FHLB”) advances, partially offset by recent issuances of senior notes.
Current wording
•Total borrowed funds decreased $3.6 billion, or 53%, compared with the prior year quarter, primarily reflecting a $4.6 billion reduction in short-term borrowings, driven by a decrease in short-term Federal Home Loan Bank (“FHLB”) advances. This decline was partially offset by increases in federal funds purchased, security repurchase agreements, and $1.0 billion of senior notes issued over the past year.
Previous wording
1 Includes interest income recoveries of $1 million and $4 million for the three months ended March 31, 2026, and 2025, respectively.
Current wording
1 Includes interest income recoveries of less than $1 million and $2 million for the three months ended, and $1 million and $6 million for the six months ended June 30, 2026, and 2025, respectively.
Previous wording
•Net interest income increased $38 million, or 6%, compared with the prior year period, largely reflecting lower funding costs. This increase was further supported by an improved mix of average interest-earning assets, driven by growth in higher-yielding loans and a reduction in lower-yielding investment securities and money market investments. As a result, the net interest margin increased to 3.27%, up from 3.10%. The net interest margin declined from 3.31% in the prior quarter, mainly due to lower earning asset yields and a decrease in average demand deposits.
Current wording
Net interest income increased $29 million, or 4%, compared with the prior year period, primarily driven by lower funding costs. This growth was further supported by an improved mix of average interest-earning assets, reflecting growth in higher-yielding loans and a reduction in lower-yielding investment securities. As a result, the net interest margin increased to 3.27%, up from 3.17% in the prior year period, and was unchanged from the previous quarter.
Previous wording
The yield on average interest-earning assets, net of hedging activity, declined 18 basis points (“bps”) in the first quarter of 2026, compared with the prior year period, reflecting lower interest rates. The net yield on average loans and leases decreased 22 bps, while the net yield on average investment securities declined 12 bps. Additionally, the yield on average money market investments decreased 72 bps, as the short-term nature of these assets resulted in quicker repricing in the declining interest rate environment.
Current wording
The yield on average interest-earning assets, net of hedging activity, declined 21 basis points (“bps”) in the second quarter of 2026, compared with the prior year period, reflecting the impact of lower interest rates. The net yield on average loans and leases decreased 25 bps, while the net yield on average investment securities declined 12 bps. Additionally, the yield on average money market investments decreased 65 bps, as the short-term nature of these assets resulted in quicker repricing in the declining interest rate environment.
Previous wording
Yields on Interest-earning Assets and Rates Paid on Interest-bearing Liabilities
Current wording
Rates Paid on Interest-bearing Liabilities
Previous wording
The total cost of deposits decreased 28 bps, and the rate paid on total deposits and interest-bearing liabilities decreased 33 bps during the first quarter of 2026, compared with the prior year period, reflecting the lower interest rate environment. The rates paid on interest-bearing deposits and total borrowed funds decreased 35 bps and 26 bps, respectively.
Current wording
The total cost of deposits declined 20 bps, while the average rate paid on total deposits and interest-bearing liabilities decreased 28 bps during the second quarter of 2026, compared with the prior year period, reflecting the lower interest rate environment. Rates paid on interest-bearing deposits declined 27 bps, while rates paid on total borrowed funds increased 13 bps.
Previous wording
◦Average interest-earning assets increased $399 million, or less than 1%, primarily due to an increase in average loans and leases. This increase was partially offset by declines in average investment securities and average money market investments.
Current wording
Average interest-earning assets increased $788 million, or 1%, compared with the prior year period. This was driven by a $1.4 billion increase in average loans and leases, partially offset by a $708 million decline in average investment securities.
Previous wording
Average loans and leases increased $1.5 billion, or 3%, to $61.1 billion, primarily due to growth in average commercial and consumer loans.
Current wording
Average loans and leases increased $1.4 billion, or 2%, to $61.9 billion, primarily due to growth in average commercial loans.
Previous wording
Average investment securities decreased $666 million, or 4%, to $18.0 billion, largely due to principal reductions, net of reinvestments. The continued paydown of lower-yielding securities—consistent with the portfolio runoff that began in 2023—has improved the overall asset mix and contributed to a higher net interest margin.
Current wording
Average investment securities decreased $708 million, or 4%, to $17.7 billion, primarily due to principal reductions, net of reinvestments. The ongoing runoff of lower-yielding securities improved the earning asset mix and was a meaningful contributor to year-over-year net interest margin expansion.
Previous wording
Average deposits increased $540 million, or 1%, to $75.5 billion. Average noninterest-bearing deposits increased $2.0 billion, or 8%, primarily reflecting the migration of a consumer interest-bearing product into a new noninterest-bearing offering. As a result, noninterest-bearing deposits accounted for 35% of total deposits during the quarter, compared with 32% in the same prior year period. This increase was partially offset by a $1.4 billion, or 3%, decline in average interest-bearing deposits, largely driven by lower brokered deposits and the aforementioned product migration.
Current wording
Average deposits increased $2.0 billion, or 3%, to $76.2 billion. Average noninterest-bearing deposits grew $1.4 billion, or 6%, primarily reflecting the migration of a consumer interest-bearing product into a new noninterest-bearing offering. As a result, noninterest-bearing deposits represented 34% of total deposits during the quarter, compared with 33% in the same prior year period. Average interest-bearing deposits increased $571 million, or 1%, largely driven by focused deposit growth initiatives.
Previous wording
Average borrowed funds decreased $1.3 billion, or 19%, to $5.4 billion. This decline was primarily driven by a $2.1 billion, or 36%, reduction in average short-term borrowings, partially offset by a $798 million, or 84%, increase in average long-term debt. The increase in long-term debt reflected the issuance of $500 million of 4.48% Fixed-to-Floating Senior Notes in February 2026 and $500 million of 4.70% Fixed-to-Floating Senior Notes in August 2025.
Current wording
Average borrowed funds decreased $2.7 billion, or 35%, to $5.1 billion, primarily due to a $3.7 billion, or 54%, reduction in average short-term borrowings. This decrease was partially offset by a $991 million, or 103%, increase in average long-term debt, reflecting the issuance of $500 million of 4.48% Fixed-to-Floating Senior Notes in February 2026 and $500 million of 4.70% Fixed-to-Floating Senior Notes in August 2025.
Previous wording
The ACL was $713 million at March 31, 2026, compared with $743 million at March 31, 2025. The year-over-year decrease in the ACL primarily reflects lower reserves associated with CRE portfolio-specific risks and changes in loan portfolio composition, partially offset by more adverse economic forecasts and increased lending activity. The ratio of ACL to total loans and leases was 1.16% at March 31, 2026, compared with 1.24% at March 31, 2025.
Current wording
The ACL was $707 million at June 30, 2026, compared with $732 million at June 30, 2025. The year-over-year decrease in the ACL primarily reflects changes in loan portfolio composition and lower reserves associated with commercial real estate (“CRE”) portfolio-specific risks, partially offset by more adverse economic forecasts and increased lending activity. The ratio of ACL to total loans and leases was 1.13% at June 30, 2026, compared with 1.20% at June 30, 2025.
Previous wording
Our ACL estimate is derived using econometric loss models that incorporate multiple economic scenarios, including optimistic, baseline, and stressed conditions. These scenarios are weighted to determine the overall credit loss estimate, and management may adjust the weightings based on its assessment of current economic conditions and reasonable and supportable forecasts. The schedule above summarizes the key drivers of the year-over-year change in the ACL, reflecting the combined effect of economic forecasts, credit quality trends and portfolio-specific risks, and portfolio composition.
Current wording
Our ACL estimate is derived using econometric loss models that incorporate multiple economic scenarios, including optimistic, baseline, and stressed conditions. These scenarios are weighted to determine the overall credit loss estimate, and management may adjust the weightings based on its assessment of current economic conditions and reasonable and supportable forecasts. The previous schedule summarizes the key drivers of the year-over-year change in the ACL, reflecting the combined effect of economic forecasts, credit quality trends and portfolio-specific risks, and portfolio composition.
Previous wording
The second bar reflects the impact of changes in economic forecasts and current economic conditions, incorporating management’s judgment in determining the scenario weightings for the current period. These changes resulted in a $91 million increase in the ACL compared with the prior year, primarily driven by the increased weighting assigned to more adverse economic scenarios.
Current wording
The second bar reflects the impact of changes in economic forecasts and current economic conditions, incorporating management’s judgment in determining the scenario weightings for the current period. These changes resulted in a $30 million increase in the ACL compared with the prior year, primarily driven by the increased weighting assigned to more adverse economic scenarios.
Previous wording
The third bar captures changes in credit quality factors, including risk grade migration, portfolio-specific risks, and specific reserves on loans. Collectively, these factors contributed to a $59 million decrease in the ACL, largely driven by reduced CRE portfolio-specific risks.
Current wording
The third bar captures changes in credit quality factors, including risk grade migration, portfolio-specific risks, and specific reserves on loans. Collectively, these factors contributed to a $20 million decrease in the ACL, largely driven by reduced CRE portfolio-specific risks.
Previous wording
The fourth bar represents the effect of changes in the composition of the loan portfolio, including shifts in loan balances and mix, the aging of the portfolio, and other qualitative risk factors. These changes resulted in a $62 million decrease in the ACL, primarily driven by changes in the loan portfolio mix, partially offset by $1.4 billion in period-end loan growth.
Current wording
The fourth bar represents the effect of changes in the composition of the loan portfolio, including shifts in loan balances and mix, the aging of the portfolio, and other qualitative risk factors. These changes resulted in a $35 million decrease in the ACL, largely driven by changes in the loan portfolio mix, partially offset by $1.7 billion in period-end loan growth.
Previous wording
The provision for credit losses, which includes both the provision for loan and lease losses and the provision for unfunded lending commitments, was negative $7 million in the first quarter of 2026, compared with positive $18 million in the first quarter of 2025. The provision for securities losses was less than $1 million during both the first quarters of 2026 and 2025.
Current wording
The provision for credit losses, which includes both the provision for loan and lease losses and the provision for unfunded lending commitments, was $3 million in the second quarter of 2026, compared with negative $1 million in the second quarter of 2025. The provision for securities losses was less than $1 million during both the second quarters of 2026 and 2025.
Previous wording
Noninterest income accounted for 22% of total net revenue (the sum of net interest income and noninterest income) in both the first quarters of 2026 and 2025. In the first quarter of 2026, noninterest income increased $16 million, or 9%, relative to the same prior year period.
Current wording
Noninterest income accounted for 40% of total net revenue (defined as the sum of net interest income and noninterest income) in the second quarter of 2026, compared with 23% in the second quarter of 2025. Noninterest income increased $270 million, or 142%, from the prior year period, primarily driven by the previously discussed pre-tax net gains.
Previous wording
Customer-related noninterest income increased $14 million, or 9%, compared with the prior year period, reflecting broad-based growth across multiple revenue streams. The increase was primarily driven by a $6 million increase in loan-related fees and income, largely attributable to higher residential mortgage loan sales activity. Retail and business banking fees increased $3 million, primarily due to an increase in overdraft fee income, while commercial account fees increased $3 million, mainly driven by higher account analysis fees.
Current wording
Customer-related noninterest income increased $18 million, or 11%, compared with the prior year period, reflecting broad-based growth across nearly all revenue streams. Capital markets fees and income increased $8 million, largely attributable to higher real estate capital markets activity and increased investment banking advisory fees. Loan-related fees and income increased $3 million, supported by higher residential mortgage loan sales activity, while the $3 million increase in commercial account fees was mainly due to growth in account analysis fees.
Previous wording
Noninterest expense increased $24 million, or 4%, compared with the prior year quarter. Salaries and employee benefits expense increased $19 million, primarily due to higher incentive compensation accruals reflecting improved profitability, as well as increased base salaries and employee benefits costs. Professional and legal services expense increased $7 million, largely reflecting higher outsourced services. Technology, telecom, and information processing expense increased $4 million, mainly due to higher application software, licensing, and maintenance costs. These increases were partially offset by a $7 million decrease in deposit insurance and regulatory expense, primarily due to higher Federal Deposit Insurance Corporation (“FDIC”) assessments related to increased classified loans in the prior year quarter.
Current wording
Noninterest expense increased $24 million, or 5%, compared with the prior year quarter. Professional and legal services expense increased $9 million, primarily reflecting higher outsourced services and technology consulting costs. Salaries and employee benefits expense increased $8 million, largely due to higher incentive compensation accruals aligned with improved profitability, as well as increased employee benefits costs.
Previous wording
Adjusted noninterest expense increased $25 million, or 5%, primarily due to the same factors previously discussed. The efficiency ratio improved to 65.0% from 66.6% in the prior year quarter, as adjusted taxable-equivalent revenue rose 7.4% and adjusted operating expenses increased 4.7%, resulting in positive operating leverage of 2.7%. For more information regarding non-GAAP financial measures, see page 37.
Current wording
Adjusted noninterest expense increased $25 million, or 5%, primarily due to the same factors discussed above. The efficiency ratio remained stable at 62.2%, consistent with the prior year quarter, and improved from 65.0% in the preceding quarter. For more information regarding non-GAAP financial measures, see page 39.
Previous wording
Total technology spend increased $12 million, or 10%, compared with the same prior year quarter. The increase was primarily due to higher technology-related expense, driven by increased professional and outsourced services, as well as higher technology, telecom, and information processing expense, largely reflecting previously noted increases in application software, licensing, and maintenance costs. In addition, technology spend increased due to higher capitalized technology investments supporting ongoing lending and customer-focused technology initiatives.
Current wording
Total technology spend increased $6 million, or 5%, compared with the prior year quarter. The increase was primarily due to higher technology, telecom, and information processing expenses, reflecting previously noted increases in application software, licensing, and maintenance costs, as well as higher technology-related expense associated with expanded professional and outsourced technology services. These increases were partially offset by a decline in capitalized technology investments, primarily due to higher investment levels in the prior year.
Previous wording
The effective tax rate was 20.7% and 28.9% for the three months ended March 31, 2026 and 2025, respectively. The year-over-year decrease was primarily attributable to new Utah state tax legislation enacted in the first quarter of 2025 related to our investment securities and trading assets, which required a revaluation of our net deferred tax asset (“DTA”)and resulted in additional tax expense in the prior year quarter.
Current wording
The effective tax rate was 22.3% and 21.8% for the three months ended June 30, 2026 and 2025, respectively, and 21.8% and 24.9% for the six months ended June 30, 2026 and 2025, respectively. The year-over-year decrease in the six-month rate was primarily due to Utah tax legislation enacted in the first quarter of 2025, which required remeasurement of the net deferred tax asset (“DTA”) and resulted in additional tax expense in the prior year period.
Previous wording
Investment securities are classified as either available-for-sale (“AFS”) or held-to-maturity (“HTM”), and are primarily used to provide balance sheet liquidity. The portfolio largely consists of securities that can be readily converted to cash or used to generate liquidity through secured borrowing agreements, without the need to sell the securities. Our investment securities portfolio also helps to balance the inherent interest rate mismatch between loans and deposits, thereby helping to preserve the economic value of shareholders’ equity. The estimated deposit duration at March 31, 2026 was assumed to be longer than the loan duration (including swaps). At March 31, 2026, the estimated duration of the investment securities portfolio, which measures price sensitivity to interest rate changes, was 3.7 years, compared with 3.8 years at December 31, 2025, primarily due to revised prepayment assumptions on certain securities.
Current wording
Investment securities are classified as either available-for-sale (“AFS”) or held-to-maturity (“HTM”), and are primarily used to provide balance sheet liquidity. The portfolio largely consists of securities that can be readily converted to cash or used to generate liquidity through secured borrowing agreements, without the need to sell the securities. Our investment securities portfolio also helps to balance the inherent interest rate mismatch between loans and deposits, thereby helping to preserve the economic value of shareholders’ equity. The estimated deposit duration at June 30, 2026 was assumed to be longer than the loan duration (including swaps). At June 30, 2026, the investment securities portfolio had an estimated duration of 3.6 years, compared with 3.8 years at December 31, 2025. The duration, which measures price sensitivity to changes in interest rates, declined modestly during the period, primarily reflecting the natural aging of the portfolio.
Previous wording
The amortized cost of total investment securities decreased $149 million, or 1%, from December 31, 2025, primarily due to principal reductions, net of reinvestments. At both March 31, 2026 and December 31, 2025, approximately 6% of the portfolio consisted of floating-rate instruments. At March 31, 2026, we maintained active pay-fixed interest rate swaps with an aggregate notional amount of $4.6 billion that are designated as fair value hedges of fixed-rate AFS securities and effectively convert the fixed interest income on the hedged portion of the securities to a floating rate.
Current wording
The amortized cost of total investment securities decreased $317 million, or 2%, from December 31, 2025, primarily due to principal reductions, net of reinvestments. At both June 30, 2026 and December 31, 2025, approximately 6% of the portfolio consisted of floating-rate instruments. At June 30, 2026, we maintained active pay-fixed interest rate swaps with an aggregate notional amount of $4.6 billion that are designated as fair value hedges of fixed-rate AFS securities and effectively convert the fixed interest income on the hedged portion of the securities to a floating rate.
Previous wording
At March 31, 2026, the AFS investment securities portfolio included approximately $71 million in net premium, distributed across various security categories. Taxable-equivalent premium amortization for these investment securities totaled $11 million for the first quarter of 2026, compared with $12 million in the same prior year period.
Current wording
At June 30, 2026, the AFS investment securities portfolio included approximately $62 million in net premium, distributed across various security categories. Taxable-equivalent premium amortization for these investment securities totaled $11 million for the second quarter of 2026, compared with $12 million in the same prior year period.
Previous wording
Municipal securities are internally risk-graded, using methodologies aligned with those applied to loans, with grading frameworks tailored to the size and nature of the credit exposure. These internal risk grades—Pass, Special Mention, and Substandard—are consistent with published regulatory risk classifications. At March 31, 2026, all municipal securities were rated as Pass. For additional information regarding the credit quality of our municipal loans and securities, see Notes 5 and 6 of the Notes to Consolidated Financial Statements.
Current wording
Our municipal loans and securities are primarily concentrated within our geographic footprint. Municipal securities are internally risk-graded using methodologies consistent with those applied to loans, with risk-grading frameworks tailored to the size and characteristics of the underlying credit exposure. Internal risk ratings—Pass, Special Mention, and Substandard—align with regulatory risk classifications. At June 30, 2026, all municipal securities were classified as Pass.
Previous wording
During the first quarter of 2026, the loan and lease portfolio increased $412 million, or 1%, to $61.3 billion at March 31, 2026. This growth was primarily driven by increases in the term CRE, commercial and industrial, and construction and land development loan portfolios. The ratio of loans and leases to total assets was 70% at March 31, 2026, compared with 68% at December 31, 2025. Commercial and industrial loans continued to represent the largest loan segment, comprising 30% for both periods.
Current wording
For the first six months of 2026, loans and leases increased $1.6 billion, or 3%, to $62.5 billion at June 30, 2026, from $60.9 billion at December 31, 2025, primarily driven by growth in commercial and industrial and term commercial real estate loans. As a result, the ratio of loans and leases to total assets increased to 70% from 69% at December 31, 2025. Commercial and industrial loans remained the largest loan segment, representing 31% of total loans at June 30, 2026, compared with 30% at December 31, 2025.
Showing the first 40 of 91 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
•Net interest income increased $29 million, or 4%, compared with the prior year period, primarily driven by lower funding costs. This growth also benefited from an improved mix of average interest-earning assets, reflecting growth in higher-yielding loans and a decline in lower-yielding investment securities. As a result, the net interest margin increased to 3.27%, up from 3.17% in the prior year period, and remained unchanged from the previous quarter.
Current report — wording carried from elsewhere
Average Balance Sheets, Yields, and Rates
Current report — wording carried from elsewhere
1 Taxable-equivalent rates used where applicable.
Current report — wording carried from elsewhere
For additional information regarding the credit quality of our municipal loans and securities, see Notes 5 and 6 of the Notes to Consolidated Financial Statements.