Zions Bancorporation Reports 2013 First Quarter Results
Ninth Consecutive Quarter of Profitability with Earnings of $0.48 Per Share
April 22, 2013
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- Zions Bancorporation, the holding company for Zions Bank, reported first quarter net earnings applicable to common shareholders of $88.3 million or $0.48 per diluted common share, compared to $35.6 million or $0.19 per diluted share for the fourth quarter of 2012.
- Loans and leases, excluding FDIC-supported loans, increased $148 million to $37.3 billion at March 31, 2013.
- Average loans and leases, excluding FDIC-supported loans, increased $413 million.
- The increases were predominantly in commercial and industrial, construction and land development, and 1-4 family residential loans.
- Average total deposits decreased $0.5 billion, or 1.1%, to $44.4 billion in the first quarter.
- Tangible common equity per common share improved $0.72 to $21.67 from $20.95 in the fourth quarter of 2012.
- Credit quality continued to improve in the first quarter. All major indicators improved, including net charge-offs, nonperforming assets, delinquent loans, and classified loans (loans with a well-defined weakness).
- Gross loan and lease charge-offs declined 35% to $35.5 million compared to $54.7 million in the fourth quarter of 2012. Gross charge-offs declined 56% from the first quarter of 2012.
- Nonperforming lending-related assets declined 8% to $684 million at March 31, 2013 from $746 million at Dec. 31, 2012.
- Nonaccrual loans declined 8% to $594 million at March 31, 2013.
- Classified loans, excluding FDIC-supported loans, decreased approximately 2% to $1.74 billion.
- Approximately 80% of classified loans were current as to principal and interest for the first quarter, compared to 79% for the fourth quarter of 2012.
- The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) decreased to 1.80% at March 31, 2013, compared to 1.96% at Dec. 31, 2012.
- The continued improvement in credit quality resulted in a first quarter provision (credit) for loan losses of $(29.0) million, compared to $(10.4) million for the fourth quarter of 2012.
- As a percentage of net loans and leases, the allowance was 2.50% at March 31, 2013.
- Zions’ allowance to net charge-offs ratio continues to rank among the strongest of U.S. regional banks.
- As of Dec. 31, 2012, Zions Bancorporation was carrying $0.9 billion in allowances for loan losses on its balance sheet.
- Zions Bancorporation’s capital ratios remain well in excess of “well-capitalized” levels.
- The estimated common equity Tier 1 capital ratio was 10.06% at March 31, 2013, compared to 9.80% in the fourth quarter.