Important Details

Zions Bank Press Release

Zions Bancorporation Reports 2012 First Quarter Results

Zions Bank News
 

Zions Bancorporation Reports 2012 First Quarter Results

Fifth Consecutive Quarter of Profitability With Earnings of $0.14 Per Share

  • Zions Bancorporation, the holding company for Zions Bank, reported first quarter net earnings applicable to common shareholders of $25.5 million or $0.14 per diluted common share, compared to $44.4 million or $0.24 per diluted share for the fourth quarter of 2011.
    • Adjusted for the noncash effects of the discount amortization on convertible subordinated debt and additional accretion (net of expense) on acquired loans ($15.0 million, $0.08 per share), and the accelerated amortization of discount on the $700 million redemption of TARP preferred stock ($19.6 million, $0.11 per share) in the first quarter, net earnings were $60.1 million or $0.33 per diluted share for the first quarter, compared to $53.5 million or $0.30 per diluted share for the fourth quarter of 2011.

  • In the first quarter the Federal Reserve formally notified Zions Bancorporation that it did not object to Zions’ Capital Plan, submitted pursuant to the Federal Reserve’s 2012 Capital Plan and Review (CapPR). Banking industry observers commonly refer to this as “passing the test.” This notification cleared the way for the repayment of the company’s TARP investment without the issuance of any additional common equity.
    • Pursuant to that plan, Zions repaid $700 million of TARP preferred stock on March 28, 2012, and currently expects to repay the remaining $700 million in the second half of the year.

  • Zions Bancorporation’s capital ratios remain in excess of “well-capitalized” levels.
    • The tangible common equity ratio increased to 6.89% at March 31, 2012, compared to 6.77% at Dec. 31, 2011.

  • Net charge-offs decreased 43% to $55 million compared to $95 million in the fourth quarter.

  • The provision for loan losses was $15.7 for the first quarter, compared to a negative provision of ($1.5) million for the fourth quarter of 2011.
    • As a percentage of net loans and leases, the allowance was 3.03% at March 31, 2012.
    • Zions’ allowance to net charge-offs ratio continues to rank among the strongest of U.S. regional banks.
    • The allowance for credit losses was 127% of nonaccrual loans at March 31, 2012.
    • As of March 31, 2012, Zions Bancorporation was carrying $1.01 billion in allowances for loan losses on its balance sheet.

  • Nonperforming lending-related assets continued to decline, down approximately 3% to $1.0 billion at March 31, 2012.
    • Nonaccrual loans declined approximately 4% to $872 million at March 31, 2012.
    • Nonaccrual loans that are current as to principal and interest were approximately 41% of the balance at March 31, 2012.
    • The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) decreased to 2.79% at March 31, 2012, compared to 2.83% at Dec. 31, 2011.

  • Zions Bancorporation’s core banking business remains strong.
    • Average total deposits for the first quarter increased $170 million to $42.4 billion. The increase resulted primarily from a higher level of average noninterest-bearing demand deposits for the first quarter, which was $15.7 billion compared to $15.5 billion for the fourth quarter of 2011.
    • Average loans and leases, excluding FDIC-supported loans, were $36.1 billion for the first quarter of 2012, or essentially the same as the fourth quarter of 2011, which had increased $158 million compared to the previous quarter.

To view the entire press release click here.

 
This page was last modified on Thu Apr 24 15:00:01 MDT 2014