Zions Bancorporation Reports 2013 Third Quarter Earnings of $1.12 Per Share
Oct. 21, 2013
- Zions Bancorporation, the holding company for Zions Bank, reported third quarter net earnings applicable to common shareholders of $209.7 million or $1.12 per diluted common share, compared to $55.4 million or $0.30 per diluted share for the second quarter of 2013.
- In the third quarter, Zions redeemed the entire $800 million par amount of its Series C preferred stock that had a carrying value of $926 million, which increased net earnings applicable to common shareholders by $126 million after-tax, or $0.68 per diluted common share.
- Loans and leases, excluding FDIC-supported loans, increased $142 million to $37.9 billion at Sept. 30, 2013.
- Average loans and leases, excluding FDIC-supported loans, increased $300 million.
- The increases were predominantly in moderate duration 1-4 family residential loans (primarily in Texas, Utah, Nevada and Colorado) and multifamily construction loans (primarily in Texas, California and Nevada). Commercial and industrial loans — a source of strong growth over the past several quarters — were relatively unchanged.
- Average total deposits increased $0.6 billion, or 1%, to $45.6 billion in the third quarter.
- This increase was driven by noninterest-bearing demand deposits, which increased $0.6 billion to an average of $18.2 billion in the third quarter.
- Tangible common equity per common share improved $1.07 to $23.16 in the third quarter, up from $22.09 last quarter.
- Credit quality continued to improve in the third quarter. All major indicators improved, including net charge-offs, nonperforming assets, delinquent loans, and classified loans (loans with a well-defined weakness).
- Net loan and lease charge-offs decreased 35% to $23 million in the third quarter of 2013 compared to $35 million in the previous quarter. Gross charge-offs declined 61% from $59 million in the third quarter of 2012.
- Nonperforming lending-related assets declined 11% to $538 million at Sept. 30, 2013, from $602 million at June 30, 2013.
- Nonaccrual loans declined 9% to $472 million at Sept. 30, 2013.
- Classified loans, excluding FDIC-supported loans, decreased approximately 13% to $1.4 billion.
- Of the classified loans, 84% were current as to principal and interest for both the third and second quarters of 2013.
- The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) decreased to 1.40% at Sept. 30, 2013, compared to 1.57% at June 30, 2013.
- The continued improvement in credit quality resulted in a negative provision for loan losses of $6 million for the third quarter, compared to a negative provision of $22 million for the second quarter of 2013.
- As a percentage of net loans and leases, the allowance was 2.30% at Sept. 30, 2013.
- Zions’ allowance to net charge-offs ratio continues to rank among the strongest of U.S. regional banks.
- As of Sept. 30, 2013, Zions Bancorporation was carrying $797.5 million 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 10.43% at Sept. 30, 2013, compared to 10.03% on June 30, 2013.
About Zions Bank
Zions Bank, a division of ZB, N.A., operates 124 full-service financial centers throughout Utah and Idaho. 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.