Fourth Quarter 2017 Earnings
Zions Bancorporation Reports Earnings of $114 Million for Fourth Quarter 2017
January 22, 2018
Zions Bancorporation, the holding company for Zions Bank, reported fourth quarter net earnings applicable to common shareholders of $114 million, or $0.54 per diluted common share, compared to $152 million, or $0.72 per diluted share for the third quarter of 2017.
- Excluding two items — (1) a $47 million write-off of deferred tax assets through income tax expense related to the Tax Cuts and Jobs Act, and (2) a $12 million contribution to a charitable foundation, also related to the Tax Cuts and Jobs Act — fourth quarter 2017 EPS was $0.80.
- The company reported 2017 annual net earnings of $550 million, or $2.60 per diluted common share, compared to 2016 annual net earnings of $411 million, or $1.99 per diluted share.
Adjusted pre-provision net revenue was $259 million for the fourth quarter, up 3% from the third quarter of 2017 and up 19% from the fourth quarter of 2016.
- Adjusted noninterest expense for the fourth quarter of 2017 was $415 million, compared to $395 million for the third quarter of 2017.
- The efficiency ratio was 61.6% for the fourth quarter of 2017, compared to 64.5% for the prior quarter, with a full-year efficiency ratio of 62.3% for 2017.
Average total deposits increased slightly to $52.3 billion for the fourth quarter compared with $52.2 billion for the fourth quarter of 2016.
Net loans and leases increased $2.1 billion (or 5%) to $44.8 billion this quarter compared to the third quarter of 2017.
- The company experienced commercial loan growth of $387 million in the fourth quarter.
- The company also experienced $227 million of growth in consumer loans, predominantly in 1-4 family residential loans.
Asset quality improved for the entire portfolio when compared with the prior quarter and the same prior year period.
- Total net charge-offs were $12 million, or an annualized 0.11% of average loans, in the fourth quarter of 2017.
- The company recorded a $(12) million provision for credit losses during the fourth quarter of 2017 compared with $1 million during the third quarter. The negative provision was primarily the result of improving credit quality in the oil and gas-related portfolio and a partial release of the reserve taken for Hurricane Harvey in the third quarter of 2017.
- The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) decreased to 0.93% at Dec. 31, 2017, compared to 1.06% at Sept. 30, 2017.
The allowance for credit losses decreased to $576 million at Dec. 31, 2017.
- As a percentage of net loans and leases, Zions’ allowance (1.29% at Dec. 31, 2017) 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, 2017, compared with 12.1% at Sept. 30, 2016. Basel III capital ratios are based on the applicable phase-in periods; however, the fully phased-in ratio is 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.