Third Quarter 2016 Earnings

Zions Bancorporation Reports Earnings of $117 Million for Third Quarter 2016

Zions Bank Oct 24, 2016

October 24, 2016

  • Zions Bancorporation, the holding company for Zions Bank, reported third quarter net earnings applicable to common shareholders of $117 million, or $0.57 per diluted common share, compared to $91 million, or $0.44 per diluted share for the second quarter of 2016.

  • Adjusted preprovision net revenue was $208 million for the third quarter, down 1% from the second quarter of 2016 and up 22% from the third quarter of 2015.
    • Noninterest expense for the third quarter of 2016 was $404 million, compared to $384 million for the second quarter of 2016.
    • The efficiency ratio was 66.0% for the third quarter of 2016, compared to 64.5% for the second quarter of 2016, with a year-to-date efficiency ratio of 66.3%.

  • Net loans and leases remained flat (10.5% on an annualized basis) at $42.5 billion this quarter compared to the second quarter of 2016.
    • The company experienced $211 million of growth in consumer loans, predominantly in 1-4 family residential loans, as well as $132 million of growth in commercial real estate loans.
    • Excluding the strategic reduction in oil and gas-related loans, net loans and leases increased $294 million during the third quarter of 2016.

  • Compared to the second quarter, tangible book value per share increased to $29.16 at Sept. 30, 2016, compared to $28.72 at June 30, 2016.

  • Total deposits increased to $50.8 billion at Sept. 30, 2016, compared to $50.3 billion at June 30, 2016.

  • Asset quality for the total portfolio remained strong and was generally stable in the third quarter compared to the second quarter.
    • Total net charge-offs were $30 million, or an annualized 0.28% of average loans, in the third quarter of 2016.
    • The company provided $16 million for credit losses during the third quarter of 2016 compared to $30 million during the second quarter. The decrease of $14 million in the allowance for loan losses reflected continued strong credit quality for the total portfolio in addition to a change in the portfolio mix.
    • The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) increased to 1.37% at Sept. 30, 2016, compared to 1.30% at June 30, 2016.

  • The allowance for credit losses decreased to $659 million at Sept. 30, 2016.
    • As a percentage of net loans and leases, the allowance was 1.55% at Sept. 30, 2016.
    • Zions’ allowance to net charge-offs ratio remains among the strongest of the company’s peer U.S. regional banks.
    • As of Sept. 30, 2016, Zions Bancorporation was carrying $597 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 12.0% at Sept. 30, 2016, compared to 12.0% at June 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 123 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 24 years and Idaho’s Boise District for the past 16 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

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