Zions Bancorporation Reports Third Quarter 2024 Financial Results

Zions Bancorporation, N.A., a prominent financial services company operating in 11 western states, has released its financial results for the third quarter of 2024. The report highlights significant improvements in key financial metrics, reflecting the company's robust performance and strategic initiatives.

Financial Highlights

For the third quarter of 2024, Zions Bancorporation reported net earnings of $204 million, translating to a diluted earnings per share (EPS) of $1.37. This marks a notable increase from the $168 million in net earnings and $1.13 diluted EPS reported in the same quarter of the previous year. The net interest margin (NIM) also saw an improvement, rising to 3.03% from 2.93% in the third quarter of 2023.

Net interest income for the quarter was $620 million, up 6% from the previous year, driven by higher earning asset yields and growth in average interest-earning assets. The company's pre-provision net revenue (PPNR) increased by 8% to $302 million, while adjusted PPNR rose by 10% to $299 million.

Business and Operational Highlights

During the third quarter, Zions Bancorporation's loans and leases grew by 3% to $58.9 billion, with consumer loans showing a significant increase. The provision for credit losses decreased substantially to $13 million from $41 million in the same period last year. The allowance for credit losses was 1.25% of loans and leases, down from 1.30%.

Deposits also saw a modest increase, with total deposits reaching $75.7 billion, up 0.4% from the previous quarter. Customer deposits, excluding brokered deposits, were $70.5 billion, reflecting a 2% increase.

Strategic Initiatives and Corporate Developments

In a strategic move, Zions Bancorporation announced an agreement with FirstBank to purchase four branches in California's Coachella Valley. This acquisition, which includes approximately $730 million in deposits and $420 million in loans, is expected to strengthen the company's competitive position in the market upon receiving regulatory approval.

The company also maintained its common stock dividend at $0.41 per share, consistent with the third quarter of 2023. Additionally, common shares outstanding decreased by 0.4 million due to stock repurchases earlier in the year.

Management's Perspective

Harris H. Simmons, Chairman and CEO of Zions Bancorporation, expressed satisfaction with the company's financial performance, highlighting the 21% increase in earnings per share over the same period last year. He noted the improvement in net interest margin and the modest increase in operating costs. Simmons also addressed the increase in classified loans, attributing it to weaker performance in multi-family residential loans but emphasized the expectation of controlled credit losses due to strong equity and sponsorship in these deals.

Future Outlook

Looking ahead, Zions Bancorporation remains optimistic about its financial stability and growth prospects. The company continues to focus on strategic acquisitions and maintaining strong credit quality. The estimated common equity tier 1 (CET1) capital ratio stands at 10.7%, up from 10.2% in the previous year, indicating a solid capital position.

SEC Filing: ZIONS BANCORPORATION, NATIONAL ASSOCIATION /UT/ [ ZION ] - 8-K - Oct. 21, 2024