Business

Second Quarter 2017 Earnings

Zions Bancorporation Reports Earnings of $154 Million for Second Quarter 2017

Jul 25, 2017

July 25, 2017

  • Zions Bancorporation, the holding company for Zions Bank, reported second quarter net earnings applicable to common shareholders of $154 million, or $0.73 per diluted common share, compared to $129 million, or $0.61 per diluted share for the first quarter of 2017

  • Pre-provision net revenue was $264 million for the second quarter, up 23% from the second quarter of 2016.
    • Noninterest expense for the second quarter of 2017 was $405 million, compared to $414 million for the first quarter of 2017.
    • The efficiency ratio was 59.8% for the second quarter of 2017, an improvement of approximately 480 basis points from the second quarter of 2016 (64.6%).

  • Net loans and leases increased $941 million, or 2.2% (8.8% on an annualized basis based on second quarter growth) this quarter to $43.7 billion at June 30, 2017.
    • During the second quarter of 2017, commercial loans increased $647 million and consumer loans increased $302 million, predominantly in 1-4 family residential loans.

  • Compared to the first quarter, tangible book value per share improved by approximately 3% to $30.50; compared to the year-ago period, tangible book value per share improved by approximately 6%.

  • Asset quality for the total portfolio remained strong and improved for the entire loan portfolio when compared with the prior quarter and the same prior year period.
    • Classified loans were down 10% from the first quarter of 2017.
    • Nonperforming assets were down 17% from the first quarter of 2017.
    • Total net charge-offs were an annualized 0.06% of average loans for the second quarter of 2017.
    • The company provided $10 million for loan losses during the second quarter of 2017, compared with $18 million during the first quarter of 2017 and $31 million for the second quarter of 2016. The decrease in the provision was impacted by several large loan recoveries recorded during the second quarter of 2017.
    • The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) improved to 1.12% at June 30, 2017, compared to 1.37% at March 31, 2017.

  • The allowance for credit losses was $607 million at June 30, 2017.
    • As a percentage of net loans and leases, the allowance was 1.39% at March 31, 2017.
    • Zions’ allowance to net charge-offs ratio remains among the strongest of the company’s peer U.S. regional banks.
    • As of June 30, 2017, Zions Bancorporation was carrying $544 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 12.3% at June 30, 2017, compared to 12.2% at March 30, 2017. 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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