Zions Bank Press Release: 2016 First Quarter Earnings
Zions Bancorporation Reports Earnings of $78.8 Million for First Quarter 2016
Zions Bancorporation, the holding company for Zions Bank, reported first quarter net earnings applicable to common shareholders of $78.8 million, or $0.38 per diluted common share, compared to $88.2 million, or $0.43 per diluted share for the fourth quarter of 2015.
Adjusted pre-provision net revenue was $182 million for the first quarter, up 5% from the fourth quarter of 2015 and up 21% from the first quarter of 2015.
- Noninterest expense for the first quarter of 2016 was $396 million, compared to $397 million for the fourth quarter of 2015.
- The efficiency ratio was 68.5% for the first quarter of 2016, an improvement of approximately 110 basis points from the fourth quarter of 2015.
Net loans and leases increased $769 million (7.6% on an annualized basis) this quarter to $41.4 billion at March 31, 2016.
- The increase in loans was widespread across products and geography with particular strength in commercial and industrial and commercial real estate term loans.
Compared to the fourth quarter, tangible book value per share improved by approximately 2% to $28.20; compared to the year-ago period, tangible book value per share improved by approximately 6%.
Outside of the oil and gas-related portfolio, credit quality improved in the first quarter in line with expectations.
- Total net charge-offs were $36 million, or an annualized 0.35% of average loans, in the first quarter of 2016.
- The company provided $42.1 million for loan losses during the first quarter compared to $22.7 million during the fourth quarter of 2015. The increase in the provision was due to continued weakness in the oil and gas sector.
- The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) was at 1.33% at March 31, 2016.
The allowance for credit losses was $681 million at March 31, 2016.
- As a percentage of net loans and leases, the allowance was 1.64% at March 31, 2016.
- Zions’ allowance to net charge-offs ratio remains among the strongest of the company’s peer U.S. regional banks.
- As of March 31, 2016, Zions Bancorporation was carrying $612 million in allowances for loan losses on its balance sheet.
Zions Bancorporation remains exceptionally well-capitalized, with all capital ratios in excess of “well-capitalized” levels.
- The estimated Basel III common equity Tier 1 capital ratio was 12.14% at March 31, 2016, compared to 12.22% at Dec. 31, 2015. The fully phased-in ratio was not substantially different.
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.