April 21, 2014
- Zions Bancorporation, the holding company for Zions Bank, reported first quarter net earnings applicable to common shareholders of $76.2 million, or $0.41 per diluted common share, compared to a loss of $(59.4) million or $(0.32) per diluted share for the fourth quarter of 2013. (The fourth quarter loss included $137 million after-tax, or $0.74 per diluted share, of impairment charges on CDO securities and debt extinguishment costs.)
- Sales and paydowns of nearly $1 billion, or 45% of the par amount of CDO securities in the first quarter of 2014, resulted in net pretax gains of approximately $31 million, or $0.10 per diluted share after-tax. The sales were made as a result of the Volcker Rule, as modified, and the company’s efforts to reduce risk in its CDO portfolio, and resulted in increased cash at the holding company.
- Loans and leases increased $155 million this quarter ($220 million excluding FDIC-supported loans) to $39.2 billion at March 31, 2014.
- Average loans and leases, excluding FDIC-supported loans, increased $545 million.
- The increases were predominantly in commercial real estate loans, primarily in California and Texas, and in 1-4 family residential loans, primarily in Texas and Utah.
- Total deposits increased $170 million to $46.5 billion at March 31, 2014.
- The ratio of average loans to average deposits was 85.5% for the first quarter of 2014, compared to 83.5% for the fourth quarter of 2013.
- Compared to the fourth quarter, tangible book value per share improved by approximately 3% to $24.53; compared to the year-ago period, tangible book value per share improved by approximately 13%.
- Credit quality remained stable and strong in the first quarter.
- Gross loan and lease charge-offs were at the lowest level since 2007 at $20.8 million, and net loan and lease charge-offs were 0.08% annualized of average loans and leases.
- Nonperforming loans declined to $441 million at March 31, 2014.
- The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) decreased to 1.12% at March 31, 2014, compared to 1.15% at Dec. 31, 2013.
- The stability and strength in credit quality resulted in a negative provision for loan losses of approximately $1 million for the first quarter, compared to a negative provision of $31 million for the fourth quarter of 2013.
- As a percentage of net loans and leases, the allowance was 2.11% at March 31, 2014.
- Zions’ allowance to net charge-offs ratio remains among the strongest of the company’s peer U.S. regional banks.
- As of March 31, 2014, Zions Bancorporation was carrying $737.0 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 10.53% at March 31, 2014, compared to 10.18% at Dec. 31, 2013.
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.