Zions Bancorporation Reports 2012 Second Quarter Results
Sixth Consecutive Quarter of Profitability With Earnings of $0.30 Per Share
- Zions Bancorporation, the holding company for Zions Bank, reported second quarter net earnings applicable to common shareholders of $55.2 million or $0.30 per diluted common share, compared to $25.5 million or $0.14 per diluted share for the first quarter.
- Adjusted for the noncash effects of the discount amortization on convertible subordinated debt and additional accretion (net of expense) on acquired FDIC-supported loans, net earnings were $72.9 million or $0.40 per diluted share for the second quarter, compared to $40.5 million or $0.22 per diluted share for the first quarter.
- Credit quality continued to improve as Zions posted one of the most broad-based improvements since the economic crisis began. All major indicators improved, including net charge-offs, nonperforming assets, delinquent loans, and classified loans (loans with a well-defined weakness).
- Net charge-offs decreased an annualized 87% to $43 million compared to $55 million in the first quarter of 2012.
- Nonperforming lending-related assets declined 9% to $0.9 billion at June 30, 2012.
- Nonaccrual loans declined 9% to $793 million at June 30, 2012.
- Approximately 73% of classified loans were current as to principal and interest for both the second and first quarters of 2012.
- The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) decreased to 2.53% at June 30, 2012, compared to 2.79% at March 31, 2012 and 2.83% at Dec. 31, 2011.
- Zions Bancorporation’s capital ratios remain in excess of “well-capitalized” levels.
- The tangible common equity ratio equaled 6.91% at June 30, 2012, essentially stable with the prior quarter’s results.
- The provision for loan losses was $10.9 million for the second quarter, compared to$15.7 million for the first quarter of 2012.
- As a percentage of net loans and leases, the allowance was 2.92% at June 30, 2012.
- Zions’ allowance to net charge-offs ratio continues to rank among the strongest of U.S. regional banks.
- As of June 30, 2012, Zions Bancorporation was carrying $1.1 billion in allowances for loan losses on its balance sheet.
- Zions Bancorporation’s core banking business remains strong.
- Loans and leases, excluding FDIC-supported loans, increased $328 million (approximately 3% annualized) to $36.2 billion at June 30, 2012. The increases were widespread geographically, predominantly in commercial and industrial and 1-4 family residential loans.
- Average total deposits for the second quarter increased $571 million or 1.3% to $42.9 billion. The increase resulted primarily from a higher level of average noninterest-bearing demand deposits for the second quarter, which were $16.2 billion compared to $15.7 billion for the first quarter of 2012.
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