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.
About Zions Bank
Zions Bank, a subsidiary of Zions Bancorporation (NASDAQ: ZION), is Utah’s oldest financial institution and operates 124 full-service financial centers in Utah, Idaho and Jackson, Wyoming. In addition to offering a wide range of traditional banking services, Zions Bank is also a leader in small business lending and has consistently ranked as the No. 1 lender of U.S. Small Business Administration 7(a) loans in Utah for the past 22 years and Idaho’s Boise District for the past 14 years. Founded in 1873, Zions Bank has been serving the communities of the Intermountain West for more than 140 years. Additional information is available at www.zionsbank.com.