Finance

Zions Bank Press Release: 2014 Fourth Quarter Earnings

Zions Bancorporation Releases 2014 Fourth Quarter Earnings

Zions Bank Jan 26, 2015

Zions Bancorporation Reports 2014 Annual Net Earnings of $333 Million

View entire press release.

Zions Bancorporation, the holding company for Zions Bank, reported annual net earnings for 2014 of $333.0 million, or $1.71 per diluted common share, compared to $294.0 million, or $1.58 diluted common share, for 2013.

  • Net earnings for the fourth quarter of 2014 were $73.2 million, or $0.36 per diluted common share, compared to $79.1 million, or $0.40 per diluted share for the third quarter of 2014, and $(59.4) million, or $(0.32) per diluted common share for the fourth quarter of 2013.
  • Earnings per share for the fourth quarter of 2013 were adversely impacted by impairment losses on collateralized debt obligation securities (CDOs) as a result of the Volcker Rule and the company’s risk reduction strategies.

Loans and leases increased $324 million to $40.1 billion at Dec. 31, 2014.

  • Increases of $535 million were primarily in Utah and Texas for commercial and industrial, and construction real estate loans.
  • The increases were partially offset by $211 million of decreases in commercial owner occupied loans predominantly in the company’s National Real Estate Group and term commercial real estate loans primarily in Utah and Colorado.

Average total deposits increased $1.5 billion, or 3%, to $47.8 billion in the fourth quarter.

  • Noninterest-bearing deposits accounted for $0.8 billion of the total quarterly growth and amounted to 44% of the total average deposits, up from 41% in the same year-ago period.

Compared to the fourth quarter, tangible book value per share improved by 1% to $26.27; compared to the year-ago period, tangible book value per share improved by approximately 10%.

Credit quality metrics remained stable to slightly improved in the fourth quarter.

  • Nonperforming lending-related assets declined 3% to $326 million at Dec. 31, 2014, from $335 million at Sept. 30, 2014.
  • Net charge-offs were 0.17% annualized of average loans at Dec. 31, 2014.
  • Classified loans decreased approximately 3% to $1.1 billion.
  • The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) decreased to 0.81% at Dec. 31, 2014, compared to 0.84% at Sept. 30, 2014.

The provision for loan losses increased to $12 million in the fourth quarter of 2014 from a negative $55 million in the prior quarter, as the company moved to strengthen reserves for its energy-related lending in light of recent declines in energy prices.

  • As a percentage of net loans and leases, the allowance was 1.71% at Dec. 31, 2014.
  • Zions Bancorporation’s allowance to net charge-offs ratio remains among the strongest of the company’s peer U.S. regional banks.
  • As of Dec. 31, 2014, Zions Bancorporation was carrying $686 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 Basel I Tier 1 common equity ratio was stable compared to the prior quarter and was among the highest in the industry at 11.92% at Dec. 31, 2014.

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.

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