Zions Bank Press Release: 2015 Third Quarter Earnings
Zions Bancorporation Reports Third Quarter 2015 Results
Zions Bancorporation, the holding company for Zions Bank, reported third quarter net earnings applicable to common shareholders of $84.2 million, or $0.41 per diluted common share, compared to an adjusted $83.4 million, or $0.41 per diluted share for the second quarter of 2015. (The second quarter earnings exclude the impact of a one-time loss of approximately $137 million on the sale of the remaining portfolio of CDO securities.)
Loan balances, excluding energy-related and National Real Estate loans, increased $285 million during the third quarter compared to a $259 million increase during the second quarter calculated on the same basis.
- Energy-related loans declined $86 million in the quarter, consistent with expectations. Further attrition in this portfolio is likely over the next several quarters.
- Overall, net loans and leases increased $89 million during the third quarter.
Average total deposits increased $794 million to $48.9 billion for the third quarter of 2015.
- Average noninterest bearing deposits increased $575 million to $21.6 billion for the third quarter, and comprised 44% of average total deposits.
Tangible book value per common share increased to $27.42 at Sept. 30, 2015, compared to $26.95 at June 30, 2015.
Overall credit quality remained in line with expectations in the third quarter, with moderate deterioration in energy loans and continued strength in other loans.
- Nonperforming assets declined to $372 million at Sept. 30, 2015, from $386 million at June 30, 2015.
- Impacted by the energy loan portfolio, classified loans increased slightly to $1.32 billion at Sept. 30, 2015, from $1.29 billion at June 30, 2015.
- Net charge-offs were $31 million in the third quarter (including energy-related loans), or an annualized 0.31% of average loans.
- The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) declined to 0.92% at Sept. 30, 2015.
The allowance for credit losses declined $11 million to $678 million at Sept. 30, 2015.
- As a percentage of net loans and leases, the allowance was 1.69% at Sept. 30, 2015.
- Zions’ allowance to net charge-offs ratio remains among the strongest of the company’s peer U.S. regional banks.
- As of Sept. 30, 2015, Zions Bancorporation was carrying $596 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 was 12.17% at Sept. 30, 2015, compared to 12.00% at June 30, 2015.
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.