Zions Bank Press Release

Zions Bancorporation Reports 2013 Third Quarter Earnings of $1.12 Per Share

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Zions Bancorporation Reports 2013 Third Quarter Results

Zions Bancorporation Reports 2013 Third Quarter Earnings of $1.12 Per Share

Oct. 21, 2013

View entire press release

  • 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.
 
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