Zions Bank Press Release: 2016 Second Quarter Earnings
Zions Bancorporation Reports Earnings of $91 Million for Second Quarter 2016
Zions Bancorporation, the holding company for Zions Bank, reported second quarter net earnings applicable to common shareholders of $91 million, or $0.44 per diluted common share, compared to $79 million, or $0.38 per diluted share for the first quarter of 2016.
Adjusted pre-provision net revenue was $211 million for the second quarter, up 16% from the first quarter of 2016 and up 32% from the second quarter of 2015.
- Noninterest expense for the second quarter of 2016 was $382 million, compared to $396 million for the first quarter of 2016, and $399 for the second quarter of 2015.
- The efficiency ratio was 64.5% for the second quarter of 2016, an improvement of nearly 400 basis points from the first quarter of 2016.
Net loans and leases increased $1.1 billion (10.5% on an annualized basis) this quarter to $42.5 billion at June 30, 2016.
- The increase in loans was widespread across products and geography, with particular strength in commercial real estate term, 1-4 family residential (which includes the purchase of $103 million of loans), and commercial and industrial loans.
Compared to the first quarter, tangible book value per share increased to $28.72 at June 30, 2016, compared to $28.20 at March 31, 2016.
Total deposits increased to $50.3 billion at June 30, 2016, compared to $49.9 billion at March 31, 2016.
Asset quality for the total portfolio remained strong and was generally stable in the second quarter compared to the first quarter.
- Total net charge-offs were $38 million, or an annualized 0.36% of average loans, in the second quarter of 2016.
- The company provided $30 million for credit losses during the second quarter of 2016 compared to $36 million during the first quarter. The decrease of $4 million in the allowance for loan losses reflected continued strong credit quality.
- The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) decreased to 1.30% at June 30, 2016, compared to 1.33% at March 31, 2016.
The allowance for credit losses was $673 million at June 30, 2016.
- As a percentage of net loans and leases, the allowance was 1.58% at June 30, 2016.
- Zions’ allowance to net charge-offs ratio remains among the strongest of the company’s peer U.S. regional banks.
- As of June 30, 2016, Zions Bancorporation was carrying $608 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 11.94% at June 30, 2016, compared to 12.13% at March 30, 2016. Basel III capital ratios are based on the applicable phase-in periods; however, 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.