Debt Refinancing and Stable Income Might Change the Case For Investing In Zions Bancorporation (ZION)

• Zions Bancorporation, N.A. recently priced US$500,000,000 of fixed-to-floating rate senior notes due August 2028, with settlement anticipated for August 18, 2025, and also posted improved financial results marked by higher net and noninterest income in its third quarter report.
• Notably, the company employed a fair value hedge to convert its fixed interest expense to a floating rate, aiming to neutralize interest rate sensitivity and support prudent balance sheet management.
• We'll now explore how Zions' recent debt refinancing and focus on balance sheet stability may influence its long-term investment outlook.

The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 18 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.

Zions Bancorporation National Association Investment Narrative Recap

To be a shareholder in Zions Bancorporation, N.A., you need to believe the bank can balance risks tied to its regional concentration and commercial real estate portfolio against the potential of loan growth and an expanding digital banking presence. The recent US$500,000,000 debt issuance and use of fair value hedging are intended to support balance sheet stability, but do not appear to meaningfully alter the biggest short-term catalyst, which remains continued growth in net interest and noninterest income, nor do they mitigate the persistent risk from commercial real estate exposure.

Among recent announcements, the 5% increase in the quarterly dividend to US$0.45 per share stands out. While not directly related to the debt refinancing, this move reflects the company’s confidence in its near-term earnings and capital position, which could serve as a positive signal as Zions continues to navigate industry-specific headwinds and supports its ongoing capital return policies.

But on the other hand, investors should be aware of potential credit losses if regional economic volatility or commercial real estate trends shift...

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

Zions Bancorporation National Association is projected to reach $3.5 billion in revenue and $818.0 million in earnings by 2028. This outlook assumes a 3.7% annual revenue growth rate and a $10 million earnings increase from current earnings of $808.0 million.

Uncover how Zions Bancorporation National Association's forecasts yield a $61.14 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Individual fair value estimates in the Simply Wall St Community for Zions Bancorporation range from US$61.14 to US$105.34, based on 3 distinct viewpoints. While earnings have been growing, commercial real estate exposure remains a central risk shaping broader expectations for future share performance.

Explore 3 other fair value estimates on Zions Bancorporation National Association - why the stock might be worth just $61.14!

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.

Seeking Other Investments?

Our daily scans reveal stocks with breakout potential. Don't miss this chance:

• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.
• AI is about to change healthcare. These 25 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• These 14 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com