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Second Quarter 2018 Earnings
Zions Bancorporation Reports Earnings of $187 Million for Second Quarter 2018
July 23, 2018
- Zions Bancorporation, the holding company for Zions Bank, reported second quarter net earnings applicable to common shareholders of $187 million, or $0.89 per diluted common share, compared to $231 million, or $1.09 per diluted share for the first quarter of 2018.
- Pre-provision net revenue was $263 million for the second quarter, down from $273 million from the first quarter of 2018 and from $264 million from the second quarter of 2017.
- Noninterest expense for the second quarter of 2018 was $428 million, compared to $405 million for the second quarter of 2017.
- The efficiency ratio was 60.9% for the second quarter of 2018, compared with 59.8% for the second quarter of 2017.
- Net loans and leases increased to $45.2 billion, up 4% compared to second quarter 2017.
- Compared to the year-ago period, tangible book value per share improved to $30.91 from $30.50.
- Asset quality continued to improve for the entire loan portfolio when compared with the prior quarter and the same prior-year period, primarily due to improvements in the oil and gas-related portfolio and decreases in overall classified and nonperforming assets.
- Zions reported net credit recoveries of 0.11% of average loans, compared with 0.06% of net charge-offs.
- The company recorded a $12 million provision for credit losses during the second quarter, compared with $(47) million during the first quarter of 2018. The allowance primarily reflects qualitative adjustments related to enhancements to the company’s internal risk grading system, economic uncertainty related to potential trade disruptions, and the potential credit impacts of rising interest rates.
- The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) decreased to 0.77% at June 30, 2018, compared to 0.87% at March 31, 2018.
- The allowance for credit losses was $490 million at June 30, 2018.
- As a percentage of net loans and leases, the allowance was 1.21% at June 30, 2018.
- 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 June 30, 2018, flat with that of the first quarter 2018.