Finance

Zions Bank Press Release: 2015 Second Quarter Earnings

Zions Bancorporation Releases 2015 Second Quarter Earnings

Zions Bank Jul 20, 2015

Excluding the impact of a one-time loss of approximately $137 million on the sale of the remaining portfolio of its CDO securities, Zions Bancorporation, the holding company for Zions Bank, reported second quarter net earnings applicable to common shareholders of $83.4 million, or $0.41 per diluted common share, compared to $75.3 million, or $0.37 per diluted share for the first quarter of 2015.

Loan balances, excluding energy-related loans, increased $128 million during the second quarter compared to a $25 million increase during the first quarter calculated on the same basis.

  • Energy-related loans declined $284 million in the quarter, primarily at Amegy Bank in Texas. This decrease was consistent with expectations of reduced loan volume within the energy industry.
  • Overall, net loans and leases declined $156 million during the second quarter.

Total deposits increased at an annualized rate of 6.8% during the second quarter.

  • Deposits increased $814 million to $48.9 billion at June 30, 2015. This growth resulted primarily from increased noninterest-bearing deposits.

Compared to June 30, 2014, tangible book value per share improved by approximately 7.2% to $26.95.

Credit quality metrics were generally stable in the second quarter and in line with expectations.

  • Nonperforming assets declined 3.6% to $386 million at June 30, 2015, from $399 million at March 31, 2015.
  • Impacted by the energy loan portfolio, classified loans increased moderately (1.9%) to $1.29 billion at June 30, 2015, from $1.27 billion at March 31, 2015.
  • Net charge-offs were $11 million in the second quarter of 2015, or an annualized 0.11% of average loans.
  • The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) was at 0.96% at June 30, 2015.

The allowance for credit losses declined $13 million to $689 million at June 30, 2015.

  • As a percentage of net loans and leases, the allowance was 1.72% at June 30, 2015.
  • Zions’ allowance to net charge-offs ratio remains among the strongest of the company’s peer U.S. regional banks.
  • As of June 30, 2015, Zions Bancorporation was carrying $609 million in allowances for loan losses on its balance sheet.

Zions Bancorporation remains exceptionally well-capitalized, with all capital ratios well in excess of “well-capitalized” levels.

  • The estimated Basel III common equity Tier 1 capital ratio on a 2015 phase-in basis was 11.91% at June 30, 2015.

Zions Bancorporation
June 30, 2015

  • Tangible Common Equity
    9.58%
  • Tier 1 Risk-Based Capital*
    14.15%
  • Total Risk-Based Capital*
    16.20%

Zions Bancorporation
March 31, 2015

  • Tangible Common Equity
    9.58%
  • Tier 1 Risk-Based Capital*
    13.93%
  • Total Risk-Based Capital*
    15.98%

Regulatory “Well-Capitalized” Standard

  • Tangible Common Equity
    n/a
  • Tier 1 Risk-Based Capital*
    6.93%
  • Total Risk-Based Capital*
    10.00%

*Ratios for June 30, 2015, are estimates. Basel III capital ratios became effective Jan. 1, 2015, and are based on a 2015 phase-in. Dec. 31, 2014, ratios are pro forma.

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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