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Zions Bancorporation Reports Earnings of $104.5 Million for Second Quarter 2014

July 22, 2014

ENP Newswire - 22 July 2014

Release date- 21072014 - Zions Bancorporation, the holding company for Zions Bank, reported second quarter net earnings applicable to common shareholders of $104.5 million, or $0.56 per diluted common share, compared to $76.2 million or $0.41 per diluted share for the first quarter of 2014.

Loans and leases increased $432 million this quarter to $39.6 billion at June 30, 2014.

Average loans and leases increased $419 million.

Unfunded lending commitments were $17.5 billion at June 30, 2014, and remained relatively stable compared to March 31, 2014.

The increases were geographically widespread in commercial and industrial loans, with smaller increases in commercial owner occupied, commercial construction, and 1-4 family residential loans.

Total deposits decreased $861 million to $45.7 billion at June 30, 2014.

The ratio of average loans to average deposits was 87.0% for the second quarter of 2014, compared to 85.5% for the first quarter.

Compared to the first quarter, tangible book value per share improved by approximately 2% to $25.13; compared to the year-ago period, tangible book value per share improved by approximately 14%.

Credit quality further improved and remained strong in the second quarter.

Net loan and lease charge-offs were $6 million, or 0.06% annualized of average loans and leases, in the second quarter of 2014. The decrease was due to recoveries of $17 million during the second quarter.

Nonperforming loans declined 14% to $379 million at June 30, 2014.

The ratio of nonperforming lending-related assets to net loans and leases and other real estate owned (OREO) decreased to 0.95% at June 30, 2014, compared to 1.12% at March 31, 2014.

The continued improvement in portfolio-specific credit quality metrics and sustained improvement in broader economic and credit quality indicators resulted in a net negative provision for loan losses of approximately $48 million for the second quarter, compared to a negative provision of $1 million for the first quarter of 2014.

As a percentage of net loans and leases, the allowance was 1.95% at June 30, 2014.

Zions' allowance to net charge-offs ratio remains among the strongest of the company's peer U.S. regional banks.

As of June 30, 2014, Zions Bancorporation was carrying $771 million in allowances for loan losses on its balance sheet.

Zions Bancorporation's capital ratios remain well in excess of 'well-capitalized' levels.

The estimated common equity Tier 1 capital ratio was 10.42% at June 30, 2014, compared to 10.56% at March 31, 2014.

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Source: ENP Newswire

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