Zions Bancorporation, N.A. priced a $500 million senior notes offering on February 4 2026. The notes are fixed‑to‑floating, carrying a 4.483 % fixed coupon through February 9 2028, after which they will pay 1.055 % above the Secured Overnight Financing Rate (SOFR). The notes mature on February 9 2029 and can be redeemed in full at 100 % of principal on that date. A receive‑fixed fair‑value hedge was executed to convert the fixed‑rate interest expense to a floating rate, neutralizing interest‑rate sensitivity during the fixed period.
Proceeds of $500 million will be used to retire short‑term borrowings, tightening the bank’s liquidity profile and potentially lowering its overall cost of capital. The transaction supports Zions’ strategy of optimizing its capital structure while maintaining a strong Common Equity Tier 1 (CET 1) ratio. The most recent quarterly report, released January 20 2026, showed a CET 1 ratio of 11.5 %, slightly higher than the 11.3 % figure cited in earlier commentary.
In the Q4 2025 earnings call, Chairman and CEO Harris Simmons highlighted the bank’s robust performance, noting a 31 % year‑over‑year increase in earnings per share and a strengthening capital position. CFO R. Richards emphasized net interest income growth and a stable net interest margin, underscoring the bank’s disciplined cost management.
The offering comes after a period of strong financial results. Zions’ Q4 2025 earnings, released January 20 2026, delivered a 31 % rise in EPS and a 11.5 % CET 1 ratio, contributing to a 52‑week high in the bank’s share price earlier in February. Analysts viewed the note issuance as a routine financial‑management move, assigning a neutral sentiment to the transaction.
The fixed‑to‑floating structure and the accompanying hedge position Zions to benefit from a potential decline in short‑term rates while protecting against a rise in long‑term rates. By shifting debt maturity to a longer horizon, the bank reduces refinancing risk and aligns its debt profile with its asset‑side duration, which can translate into a lower weighted‑average cost of capital over time.
Overall, the $500 million senior notes issuance reflects Zions’ proactive approach to capital structure management, leveraging market conditions to strengthen liquidity and maintain regulatory capital adequacy while positioning the bank for continued growth.
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