Third Quarter 2018 Earnings
Zions Bancorporation, N.A. Reports Earnings of $215 Million for Third Quarter 2018
October 22, 2018
- Zions Bancorporation, N.A. reported third quarter net earnings applicable to common shareholders of $215 million, or $1.04 per diluted common share, compared with $152 million, or $0.72 per diluted share for the third quarter of 2017, and second quarter 2018 net earnings of $187 million, or $0.89 per diluted share.
- Adjusted preprovision net revenue was $291 million for the third quarter, up 16% from the second quarter of 2018.
- Adjusted noninterest expense for the third quarter of 2018 was $416 million, compared with $420 million for the second quarter of 2018.
- The efficiency ratio was 58.8% for the third quarter of 2018, an improvement of approximately 35 basis points from the second quarter of 2018 (62.3%).
- Net loans and leases increased $1.7 billion (4%) this quarter to $45.8 billion at Sept. 30, 2018, from $44.2 billion at Sept. 30, 2017.
- The largest increases were in commercial loans and consumer loans.
- Within commercial loans, municipal and owner-occupied loans increased $490 million and $466 million, respectively.
- The increase in consumer loans was primarily in 1-4 family residential loans, which increased $517 million.
- Tangible book value per share improved to $31.08 at Sept. 30, 2018, compared with $30.93 at Sept. 30, 2017.
- Asset quality continued to improve for the entire loan portfolio when compared with the prior quarter and the same prior year period.
- Classified loans were down 17.2% from the second quarter of 2018.
- Nonperforming assets were down 15.9% from the second quarter of 2018.
- The company experienced net credit recoveries of 0.01% of average loans, compared with net charge-offs of 0.07% of average loans in the same prior year period.
- The company recorded an $(11) million provision for credit losses during the third quarter compared with $12 million during the second quarter of 2018. The $(11) million provision reflects net recoveries and ongoing improvements of credit quality metrics in the entire loan portfolio.
- The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) improved to 0.64% at Sept. 30, 2018, compared with 0.77% at June 30, 2018.
- The allowance for credit losses was $480 million at Sept. 30, 2018.
- As a percentage of net loans and leases, the allowance was 1.05% at Sept. 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 12.1% at Sept. 30, 2018, compared with 12.2% at June 30, 2018. The fully phased-in ratio was not substantially different.
About Zions Bank
Zions Bank, a division of Zions Bancorporation, 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 25 years and Idaho’s Boise District for the past 17 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.