Did Rising Net Charge-Offs and Loan Fraud Shift Zions Bancorporation's (ZION) Long-Term Investment Narrative?

• Zions Bancorporation, N.A. recently announced a regular quarterly dividend of US$0.45 per common share, payable on November 20, 2025, with a record date of November 13, 2025, and reported third quarter 2025 results showing rising net interest income and net income compared to the prior year.
• Despite posting growth, concerns have emerged as the bank disclosed a significant jump in net charge-offs and its involvement in potentially fraudulent loans, reflecting ongoing credit quality risks for regional banks.
• We'll examine how the bank's rising net charge-offs and loan fraud disclosures may impact its long-term investment narrative.

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Zions Bancorporation National Association Investment Narrative Recap

To invest in Zions Bancorporation, you need confidence in its ability to grow earnings while managing regional credit risks, especially as net charge-offs sharply increased in the latest quarter. The recent surge in charge-offs and disclosure of potentially fraudulent loans may temper optimism from revenue growth, making credit quality the biggest near-term risk; this risk now appears materially heightened, potentially impacting sentiment more than the steady net interest income gains that had been driving the short-term narrative.

Among recent announcements, the Q3 2025 earnings reveal stands out: while net interest income and net income both grew year-over-year, the same quarter also saw net charge-offs escalate from US$3 million to US$56 million. This pairing of higher profits with higher losses underscores why investors should look beyond headline earnings when weighing the immediate impact of rapid shifts in borrower quality.

Yet in contrast to the steady dividend increases investors have come to expect, there is a risk to watch for related to regional commercial real estate exposure if market conditions shift...

Read the full narrative on Zions Bancorporation National Association (it's free!)

Zions Bancorporation National Association is expected to achieve $3.5 billion in revenue and $818.0 million in earnings by 2028. This outlook is based on a projected annual revenue growth rate of 3.7% and a $12 million increase in earnings from the current level of $806.0 million.

Uncover how Zions Bancorporation National Association's forecasts yield a $62.30 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members offered two fair value estimates for Zions Bancorporation, ranging broadly from US$62.30 to US$116.92 per share. With credit quality risks newly in focus, these contrasting outlooks show how much your confidence in risk management can influence expectations for future performance.

Explore 2 other fair value estimates on Zions Bancorporation National Association - why the stock might be worth just $62.30!

Build Your Own Zions Bancorporation National Association Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Zions Bancorporation National Association research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Zions Bancorporation National Association research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Zions Bancorporation National Association's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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