Zions Bancorporation Chairman and CEO Harris Simmons commented, “First quarter net income and earnings per share increased 18% from last year’s period, to $169 million and $1.13, respectively. This reflects a 16 basis point increase in the net interest margin and a 10% increase in adjusted pre-provision net revenue. The results also reflect an $0.11 per share charge to income tax expense resulting from a beneficial Utah tax law change on securities portfolio income, requiring a revaluation of our deferred tax assets, primarily those associated with accumulated other comprehensive income. Most of this charge is expected to accrete back into income over the life of the securities that gave rise to these deferred tax assets. The tax law change will additionally reduce the tax on securities income in future periods.”
Mr. Simmons continued, “In late March we completed the acquisition of four branches in California’s Coachella Valley from FirstBank of Denver, Colorado, adding approximately $630 million in deposits and $420 million in loans. We look forward to serving these new customers of our affiliate, California Bank & Trust.”
Mr. Simmons concluded, “Credit quality remained in very good shape during the quarter, with nonperforming assets stable compared with last quarter at 0.51% of loans and leases and annualized net charge-offs of 0.11% of loans and leases. At the same time, the outlook for the economy is perhaps more uncertain than it’s been in a number of years, clouded by the very real potential for negative impacts from tariffs and trade policy, both here and abroad. We are nevertheless confident that our credit culture and practices and our strong reserves position us to manage through possible turbulence that might materialize in coming quarters.”