Third Quarter 2017 Earnings

• Zions Bancorporation, the holding company for Zions Bank, reported third quarter net earnings applicable to common shareholders of $152 million, or $0.72 per diluted common share, compared to $154 million, or $0.73 per diluted share for the second quarter of 2017.
• Adjusted preprovision net revenue was $251 million for the third quarter, up 20% from the third quarter of 2016.
  • Noninterest expense for the third quarter of 2017 was $413 million, compared to $405 million for the second quarter of 2017.
  • The efficiency ratio was 62.3% for the third quarter of 2017, an improvement of approximately 360 basis points from the third quarter of 2016 (65.9%).
• Net loans and leases increased $1.6 billion (3.8%) this quarter to $44.2 billion at Sept. 30, 2017, from $42.5 billion at Sept. 30, 2016.
  • During the third quarter of 2017, commercial loans increased $915 million and consumer loans increased $1.0 billion, predominantly in 1-4 family residential loans, compared to the prior year period.
• Compared to the prior year period, tangible book value per share improved by approximately 6% to $30.93.
• Asset quality improved for the total portfolio when compared with the prior quarter and the same prior year.
  • Classified loans were down 5.2% from the second quarter of 2017.
  • Nonperforming assets were down 4.5% from the second quarter of 2017.
  • Total net charge-offs were $8 million, compared to $30 million in the same prior year period.
  • The company provided $1 million for loan losses during the third quarter compared to $10 million during the second quarter of 2017. The $1 million in provision is the result of a $34 million qualitative increase in the allowance for credit losses due to potential losses caused by Hurricane Harvey.
  • The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) improved to 1.06% at Sept. 30, 2017, compared to 1.12% at June 30, 2017.
• The allowance for credit losses was $600 million at Sept. 30, 2017.
  • As a percentage of net loans and leases, the allowance was 1.36% at Sept. 30, 2017.
  • 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 12.2% at Sept. 30, 2017, compared to 12.3% at June 30, 2017. The fully phased-in ratio was not substantially different.

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.