Want to see ZION full AI Analyst Report?
Zions Bancorporation National Association (ZION) Risk Analysis
Risk Overview Q2, 2026
Source: the company's latest filing for the period ended Jun 30, 2026, filed Aug 06, 2026
Risk Change Over Time
- Accounting & Financial Operations - Risk 1We utilize models to support the Bank's management and decision-making processes. Inaccurate assumptions or non-representative training data within these models could lead to unreliable outputs or suboptimal decisions, which could adversely affect our operations.
We utilize various models in the management of the Bank, including those used to estimate the allowance for credit losses ("ACL"), manage interest rate and liquidity risk, project stress-related losses across segments of our loan and investment portfolios, and forecast net revenue under adverse conditions. However, models are inherently subject to limitations and cannot precisely predict future outcomes. Weaknesses in model design-such as inaccurate assumptions or reliance on historical data used to "train" or calibrate models that may not reflect current or expected conditions-could lead to inaccurate or misleading outputs. Consequently, decisions based on these models may occasionally be suboptimal. For more information about our deposit models, see "Interest Rate and Market Risk Management" in MD&A on page 72.
- Debt & Financing - Risk 2Fluctuations in the availability and sources of liquidity and capital could restrict our operational flexibility and constrain future growth opportunities.
Our primary source of liquidity is customer deposits, which can be influenced by market-related forces such as increased competition, the adoption of emerging technologies-including stablecoins and tokenized deposits-and various other external factors. If we are unable to fund assets through customer deposits or access alternative funding sources on favorable terms-or if we encounter rising borrowing costs, increased FDIC insurance assessments, or are unable to manage liquidity effectively-our liquidity position, operating margins, financial condition, and overall financial performance could be materially and adversely affected. We also rely on our investment securities portfolio as a source of contingent liquidity through cash flows, maturities, and secured borrowing capacity. The portfolio consists of instruments that can be readily pledged or converted to cash and is managed to support our asset-liability profile by helping to mitigate interest rate mismatches between loans and deposits. Any unexpected changes in portfolio runoff, market valuations, or the availability of secured borrowing markets could adversely affect our liquidity position and the effectiveness of our asset-liability management strategies. The Federal Reserve's monetary policy decisions, along with broader economic conditions, may continue to influence our liquidity position and related risk management strategies. The Federal Home Loan Bank ("FHLB") system and Federal Reserve remain significant sources of supplementary liquidity and funding. However, access to FHLB advances is subject to specific eligibility requirements and conditions, and such funding may not always be available. Furthermore, changes to FHLB or Federal Reserve funding programs could adversely affect our liquidity and the effectiveness of our risk management efforts.
- Debt & Financing - Risk 3Credit quality has negatively impacted our performance in the past and may continue to do so in the future.
Credit risk is one of our most significant risks. Adverse macroeconomic conditions-such as rising or persistently elevated interest rates, heightened market volatility, or a weakening U.S. economy at both the national and local markets in which we operate-could result in, among other things, deterioration in credit quality and reduced credit demand. These developments may adversely impact income generated from our loan and investment portfolios, lead to increased charge-offs, and require higher provisions for credit losses. For example, we recently incurred significant credit losses in connection with revolving lines of credit extended to two related commercial borrowers to finance the origination and purchase of commercial and residential mortgages.
Risk Highlights Q2, 2026
Risk Word Cloud
Risk Factors Full Breakdown - Total Risks 38
- Accounting & Financial Operations - Risk 1We could be adversely affected by failures in our internal controls.
Despite their design and implementation, our internal controls are subject to inherent limitations and may not fully prevent or detect operational failures or misstatements in our financial statements. Such issues may arise from inadequate or failed internal processes and systems, human error or misconduct, or adverse external events. A failure in our internal controls could materially and negatively affect our financial performance and earnings. Moreover, any perceived weakness in our internal controls may undermine stakeholder confidence-including that of customers, regulators, and investors-potentially resulting in reputational harm and adverse impacts on our business operations and stock price.
- Accounting & Financial Operations - Risk 2We utilize models to support the Bank's management and decision-making processes. Inaccurate assumptions or non-representative training data within these models could lead to unreliable outputs or suboptimal decisions, which could adversely affect our operations.
We utilize various models in the management of the Bank, including those used to estimate the allowance for credit losses ("ACL"), manage interest rate and liquidity risk, project stress-related losses across segments of our loan and investment portfolios, and forecast net revenue under adverse conditions. However, models are inherently subject to limitations and cannot precisely predict future outcomes. Weaknesses in model design-such as inaccurate assumptions or reliance on historical data used to "train" or calibrate models that may not reflect current or expected conditions-could lead to inaccurate or misleading outputs. Consequently, decisions based on these models may occasionally be suboptimal. For more information about our deposit models, see "Interest Rate and Market Risk Management" in MD&A on page 72.
- Accounting & Financial Operations - Risk 3We may be adversely affected by risks related to accounting, financial reporting, and regulatory compliance.
We are subject to risks associated with accounting, financial reporting, and regulatory compliance. The accurate reporting of our financial condition and performance requires the application of significant estimates, judgments, and interpretations of complex and evolving accounting and regulatory standards. Modifications to accounting policies or changes in applicable accounting standards could materially impact the presentation of our financial results. The ongoing identification, interpretation, and implementation of complex and frequently changing accounting and regulatory requirements represent a persistent risk to our operations.
- Accounting & Financial Operations - Risk 4The value of our goodwill may decline in the future.
If the fair value of a reporting unit is determined to be lower than its carrying value, we would be required to recognize a goodwill impairment charge. Such a charge may arise due to various factors, including deterioration in the economic environment, a decline in the financial performance of the reporting unit, or the emergence of new legislative or regulatory developments that were not anticipated in management's forecasts.
See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.