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Is Zions Well-Positioned to Sustain Enhanced Capital Returns?
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Key Takeaways
Zions Bancorporation increased its quarterly dividend by 6.7% to 48 cents per share.
ZION expanded its 2026 share repurchase target to $300 million with a new $75 million authorization.
Zions Bancorporation strengthened capital, funding and loan growth while advancing strategic expansion.
Zions Bancorporation National Association (ZION - Free Report) maintains a disciplined capital distribution strategy, focusing on returning value to shareholders through regular increases in dividends and new share repurchase plans.
Last month, the company increased its quarterly cash dividend by 6.7% to 48 cents per share. Over the past five years, ZION has raised its dividend five times, with an annualized growth rate of 5.2%. The company has a payout ratio of 27% and currently offers a dividend yield of 2.58%.
Image Source: Zacks Investment Research
Apart from dividends, Zions has been actively returning capital through share repurchases. Recently, the board authorized an additional $75 million common share repurchase program for the third quarter of 2026, bringing the 2026 repurchase target to $300 million.
During the second quarter of 2026, the company repurchased 1.2 million common shares for $75 million. This, together with regular dividend payouts, brought total capital distribution to $142 million in the quarter.
Zions has been pursuing strategic growth initiatives to strengthen its core operations. In March 2026, the company agreed to acquire the agency lending business of Basis Investment Group, expanding its real estate financing capabilities and capital markets platform. The deal is expected to enhance Zions' presence in high-growth Western markets and support long-term revenue growth through a broader range of commercial real estate lending solutions.
As of June 30, 2026, Zions' loans and leases totaled $62.5 billion, up 3% year over year, while total deposits increased 4% to $76.6 billion. The total borrowed funds declined 53% to $3.2 billion, primarily due to lower short-term FHLB advances, highlighting the company's improving funding profile. Further, ZION maintains an investment-grade BBB+ long-term issuer credit rating from S&P Global Ratings, reflecting its strong credit profile and ability to meet its financial obligations even during periods of economic stress.
The company’s estimated Common Equity Tier 1 (CET1) capital ratio improved to 11.8% as of June 30, 2026, from 11.0% a year earlier, while the Tier 1 risk-based capital ratio and total risk-based capital ratio were 11.9% and 14.0%, respectively. The Tier 1 leverage ratio improved to 9.4%, underscoring the company's solid capital strength and ability to withstand economic uncertainty.
Thus, Zions’ consistent dividend hikes, active share repurchases, and disciplined payout strategy indicate strong capital management and financial stability. Thus, the company is well-positioned to sustain enhanced capital distribution activities and reinforce investor confidence in its long-term prospects.
Zions’ Price Performance
Over the past six months, shares of Zions Bancorporation have gained 9.2%, outperforming the industry's 1% growth.
KeyCorp (KEY - Free Report) follows a disciplined capital distribution strategy through dividends and share repurchases. In July 2026, the company declared a quarterly common cash dividend of 20.5 cents per share. The dividend will be paid out on Sept. 15, 2026, to shareholders of record as of Sept. 1.
During the second quarter of 2026, KEY repurchased $341 million of its common shares while maintaining a strong Common Equity Tier 1 (CET1) ratio of 11.2%.
Management reaffirmed its commitment to delivering shareholder value through a balanced capital return strategy, supported by a resilient balance sheet and solid capital generation.
First Horizon Corporation (FHN - Free Report) has a disciplined capital distribution strategy in place. Last month, the company's board declared a quarterly cash dividend of 17 cents per common share. This will be paid out on Oct. 1, 2026, to shareholders of record as of Sept. 11.
During the second quarter of 2026, FHN repurchased approximately 3.5 million common shares for $69 million.
Supported by solid earnings and healthy profitability, the company remains committed to returning capital to shareholders while investing in long-term growth initiatives.
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Is Zions Well-Positioned to Sustain Enhanced Capital Returns?
Key Takeaways
Zions Bancorporation National Association (ZION - Free Report) maintains a disciplined capital distribution strategy, focusing on returning value to shareholders through regular increases in dividends and new share repurchase plans.
Last month, the company increased its quarterly cash dividend by 6.7% to 48 cents per share. Over the past five years, ZION has raised its dividend five times, with an annualized growth rate of 5.2%. The company has a payout ratio of 27% and currently offers a dividend yield of 2.58%.
Image Source: Zacks Investment Research
Apart from dividends, Zions has been actively returning capital through share repurchases. Recently, the board authorized an additional $75 million common share repurchase program for the third quarter of 2026, bringing the 2026 repurchase target to $300 million.
During the second quarter of 2026, the company repurchased 1.2 million common shares for $75 million. This, together with regular dividend payouts, brought total capital distribution to $142 million in the quarter.
Zions has been pursuing strategic growth initiatives to strengthen its core operations. In March 2026, the company agreed to acquire the agency lending business of Basis Investment Group, expanding its real estate financing capabilities and capital markets platform. The deal is expected to enhance Zions' presence in high-growth Western markets and support long-term revenue growth through a broader range of commercial real estate lending solutions.
As of June 30, 2026, Zions' loans and leases totaled $62.5 billion, up 3% year over year, while total deposits increased 4% to $76.6 billion. The total borrowed funds declined 53% to $3.2 billion, primarily due to lower short-term FHLB advances, highlighting the company's improving funding profile. Further, ZION maintains an investment-grade BBB+ long-term issuer credit rating from S&P Global Ratings, reflecting its strong credit profile and ability to meet its financial obligations even during periods of economic stress.
The company’s estimated Common Equity Tier 1 (CET1) capital ratio improved to 11.8% as of June 30, 2026, from 11.0% a year earlier, while the Tier 1 risk-based capital ratio and total risk-based capital ratio were 11.9% and 14.0%, respectively. The Tier 1 leverage ratio improved to 9.4%, underscoring the company's solid capital strength and ability to withstand economic uncertainty.
Thus, Zions’ consistent dividend hikes, active share repurchases, and disciplined payout strategy indicate strong capital management and financial stability. Thus, the company is well-positioned to sustain enhanced capital distribution activities and reinforce investor confidence in its long-term prospects.
Zions’ Price Performance
Over the past six months, shares of Zions Bancorporation have gained 9.2%, outperforming the industry's 1% growth.
Image Source: Zacks Investment Research
Currently, ZION carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Banks’ Capital Return Strategy
KeyCorp (KEY - Free Report) follows a disciplined capital distribution strategy through dividends and share repurchases. In July 2026, the company declared a quarterly common cash dividend of 20.5 cents per share. The dividend will be paid out on Sept. 15, 2026, to shareholders of record as of Sept. 1.
During the second quarter of 2026, KEY repurchased $341 million of its common shares while maintaining a strong Common Equity Tier 1 (CET1) ratio of 11.2%.
Management reaffirmed its commitment to delivering shareholder value through a balanced capital return strategy, supported by a resilient balance sheet and solid capital generation.
First Horizon Corporation (FHN - Free Report) has a disciplined capital distribution strategy in place. Last month, the company's board declared a quarterly cash dividend of 17 cents per common share. This will be paid out on Oct. 1, 2026, to shareholders of record as of Sept. 11.
During the second quarter of 2026, FHN repurchased approximately 3.5 million common shares for $69 million.
Supported by solid earnings and healthy profitability, the company remains committed to returning capital to shareholders while investing in long-term growth initiatives.