Business

Fourth Quarter 2016 Earnings

Zions Bancorporation Reports Earnings of $125 Million for Fourth Quarter 2016

Zions Bank Jan 23, 2017

January 23, 2017

  • Zions Bancorporation, the holding company for Zions Bank, reported fourth quarter net earnings applicable to common shareholders of $125 million, or $0.60 per diluted common share, compared to $117 million, or $0.57 per diluted share for the third quarter of 2016.
    • The company reported 2016 annual net earnings of $411 million, or $1.99 per diluted common share, compared to 2015 annual net earnings of $247 million, or $1.20 per diluted share.

  • Adjusted pre-provision net revenue was $217 million for the fourth quarter, up 4% from the third quarter of 2016 and up 25% from the fourth quarter of 2015.
    • Adjusted noninterest expense for the fourth quarter of 2016 was $395 million, compared to $404 million for the third quarter of 2016.
    • The efficiency ratio was 64.5% for the fourth quarter of 2016, compared to 66.0% for the third quarter of 2016, with an efficiency ratio of 65.8% for 2016.

  • Total deposits increased to $53.2 billion at Dec. 31, 2016, compared to $50.8 billion at Sept. 30, 2016.

  • Net loans and leases remained relatively flat at $42.6 billion this quarter compared to the third quarter of 2016.
    • The company experienced $227 million of growth in consumer loans, predominantly in 1-4 family residential loans.
    • Excluding the reduction in oil and gas-related loans, net loans and leases increased $265 million during the fourth quarter of 2016.

  • Asset quality for the total portfolio remained strong and was generally stable in the fourth quarter compared to the third quarter.
    • Total net charge-offs were $27 million, or an annualized 0.25% of average loans, in the fourth quarter of 2016.
    • The company provided $1 million for credit losses during the fourth quarter of 2016 compared to $16 million during the third quarter. The decrease in the allowance for loan losses was primarily due to continued strong credit quality for the total portfolio in addition to a change in the portfolio mix, as oil and gas-related exposures declined, and residential real estate and commercial real estate term exposures increased.
    • The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) decreased to 1.34% at Dec. 31, 2016, compared to 1.37% at Sept. 30, 2016.

  • The allowance for credit losses decreased to $632 million at Dec. 31, 2016.
    • As a percentage of net loans and leases, the allowance was 1.48% at Dec. 31, 2016.
    • Zions’ allowance to net charge-offs ratio remains among the strongest of the company’s peer U.S. regional banks.

  • 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 12.1% at Dec. 31, 2016, compared to 12.0% at Sept. 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 www.zionsbank.com.

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