SALT LAKE CITY, April 20,
2015 /PRNewswire/ -- Zions Bancorporation (NASDAQ: ZION)
("Zions" or "the Company") today reported first quarter net
earnings applicable to common shareholders of $75.3 million, or $0.37 per diluted common share, compared to
$66.8 million, or $0.33 per diluted common share, for the fourth
quarter of 2014.
The following is an abbreviated version of the 2015 first
quarter earnings release. For the full version, including financial
tables, please visit zionsbancorporation.com.
First Quarter 2015 Highlights
- Credit quality metrics remained in line with expectations.
However, as expected, energy-related nonperforming and classified
loans increased and are expected to increase further in a continued
low energy price environment. The Company experienced $17 million in net recoveries on loans.
- Total noninterest expenses improved to $397 million from $423
million in the prior quarter due in part to reduced costs
from CCAR preparation.
- Net interest income declined somewhat, due primarily to fewer
days of income and lower yields on loans as a result of continued
pricing pressure on loan production particularly for larger
commercial loans.
- The estimated Basel III common equity tier 1 capital ratio at
March 31, 2015 was 11.81% on a 2015 phase-in basis,
essentially unchanged from 11.82% at December 31, 2014.
"The first quarter results were generally in line with our
expectations. We continued to strengthen reserves in light of
continuing stress in the energy sector. We are nonetheless pleased
to see the proactive and rapid steps many in that industry are
taking to adjust to the current environment, including raising
significant amounts of capital. We are encouraged by other credit
trends and notably experienced recoveries net of charge-offs of
$17 million during the quarter," said
Harris H. Simmons, chairman and
chief executive officer.
Mr. Simmons continued, "Loan growth was subdued during the
quarter; however, we continue to exercise caution with regard to
underwriting standards and remain disciplined with respect to
pricing. Finally, we are pleased to have announced an increase in
the quarterly dividend on common stock to $0.06 per share from the previous $0.04 quarterly rate."
Net Interest Income
Net interest income decreased to
$417 million in the first quarter of
2015 from $430 million in the fourth
quarter of 2014, primarily as a result of two fewer days of income.
The net interest margin decreased to 3.22% in the first quarter of
2015, compared to 3.25% in the fourth quarter of 2014, primarily
due to lower loan yields on new production.
Noninterest Income
Noninterest income for the first
quarter of 2015 was $122 million,
compared to $129 million for the
fourth quarter of 2014. The decrease was mostly attributable to the
recognition in the fourth quarter of unrealized gains on Small
Business Investment Company investments in both dividends and other
investment income and in equity securities gains; excluding the
securities gains, noninterest income declined moderately primarily
due to lower service charges, which is largely attributable to
seasonal effects.
Noninterest Expense
Noninterest expense for the first
quarter of 2015 was $397 million,
compared to $423 million for the
fourth quarter of 2014 and $398
million for the first quarter of 2014. The decrease compared
to the fourth quarter related to (1) the recognition of the
litigation settlement in the fourth quarter in other noninterest
expense and (2) decreased professional and legal services following
the Company's CCAR submission in January
2015. The $5 million quarterly
increase to $244 million in salary
and employee benefits expense was primarily due to the cyclical
first quarter increase in payroll taxes.
Conference Call
Zions will host a conference call to
discuss these first quarter results at 5:30
p.m. ET this afternoon (April 20, 2015). Media
representatives, analysts and the public are invited to listen to
this discussion by calling 253-237-1247 (domestic and
international) and entering the passcode 10432053, or via on-demand
webcast. A link to the webcast will be available on the Zions
Bancorporation website at zionsbancorporation.com. The webcast of
the conference call will also be archived and available for 30
days.
About Zions Bancorporation
Zions Bancorporation is one
of the nation's premier financial services companies, consisting of
a collection of great banks in select Western markets. Zions
operates its banking businesses under local management teams and
community identities in 11 Western and Southwestern states:
Arizona, California, Colorado, Idaho, Nevada, New
Mexico, Oregon,
Texas, Utah, Washington, and Wyoming. The Company is a national leader in
Small Business Administration lending and received 24 "Excellence"
awards by Greenwich Associates for the 2014 survey. In addition,
Zions is included in the S&P 500 and NASDAQ Financial 100
indices. Investor information and links to subsidiary banks can be
accessed at zionsbancorporation.com.
Forward-Looking Information
Statements in this press
release that are based on other than historical data or that
express the Company's expectations regarding future events or
determinations are forward-looking within the meaning of the
Private Securities Litigation Reform Act of 1995. Statements based
on historical data are not intended and should not be understood to
indicate the Company's expectations regarding future events.
Forward-looking statements provide current expectations or
forecasts of future events or determinations. These forward-looking
statements are not guarantees of future performance or
determinations, nor should they be relied upon as representing
management's views as of any subsequent date. Forward-looking
statements involve significant risks and uncertainties, and actual
results may differ materially from those presented, either
expressed or implied, in this press release. Factors that could
cause actual results to differ materially from those expressed in
the forward-looking statements include the actual amount and
duration of declines in the price of oil and gas as well as other
factors discussed in the Company's most recent Annual Report on
Form 10-K and Quarterly Report on Form 10-Q, filed with the
Securities and Exchange Commission ("SEC") and available at the
SEC's Internet site (http://www.sec.gov).
Except as required by law, the Company specifically disclaims
any obligation to update any factors or to publicly announce the
result of revisions to any of the forward-looking statements
included herein to reflect future events or developments.
FINANCIAL
HIGHLIGHTS (Unaudited)
|
|
|
|
Three Months
Ended
|
(In thousands,
except share, per share, and ratio data)
|
March 31,
2015
|
|
December 31,
2014
|
|
September 30,
2014
|
|
June 30,
2014
|
|
March 31,
2014
|
|
BALANCE
SHEET
|
|
|
|
|
|
Loans and leases, net
of allowance
|
$
|
39,560,101
|
|
$
|
39,458,995
|
|
$
|
39,129,295
|
|
$
|
38,954,172
|
|
$
|
38,460,917
|
Total
assets
|
57,555,931
|
|
57,208,874
|
|
55,458,870
|
|
55,111,275
|
|
56,080,844
|
Deposits
|
48,123,360
|
|
47,848,075
|
|
46,266,562
|
|
45,672,140
|
|
46,533,305
|
Total shareholders'
equity
|
7,454,298
|
|
7,369,530
|
|
7,322,159
|
|
6,700,090
|
|
6,586,216
|
|
|
|
|
|
|
STATEMENT OF
INCOME
|
|
|
|
|
|
Net interest
income
|
$
|
417,346
|
|
$
|
430,430
|
|
$
|
416,819
|
|
$
|
416,284
|
|
$
|
416,471
|
|
|
|
|
|
|
|
|
|
|
Taxable-equivalent
net interest income
|
421,581
|
|
434,789
|
|
420,850
|
|
420,202
|
|
420,305
|
Provision for loan
losses
|
(1,494)
|
|
11,587
|
|
(54,643)
|
|
(54,416)
|
|
(610)
|
Total noninterest
income
|
121,822
|
|
129,396
|
|
116,071
|
|
124,849
|
|
138,313
|
Total noninterest
expense
|
397,461
|
|
422,666
|
|
438,536
|
|
406,027
|
|
398,063
|
|
|
|
|
|
|
|
|
|
|
Net earnings
applicable to common shareholders
|
75,279
|
|
66,761
|
|
79,127
|
|
104,490
|
|
76,190
|
|
|
|
|
|
|
PER COMMON
SHARE
|
|
|
|
|
|
Net earnings per
diluted common share
|
$
|
0.37
|
|
$
|
0.33
|
|
$
|
0.40
|
|
$
|
0.56
|
|
$
|
0.41
|
Dividends
|
0.04
|
|
0.04
|
|
0.04
|
|
0.04
|
|
0.04
|
Book value per common
share 1
|
31.74
|
|
31.35
|
|
31.14
|
|
30.77
|
|
30.19
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per common share 1
|
26.64
|
|
26.23
|
|
26.00
|
|
25.13
|
|
24.53
|
|
|
|
|
|
|
SELECTED
RATIOS
|
|
|
|
|
|
Return on average
assets
|
0.66%
|
|
0.57%
|
|
0.69%
|
|
0.87%
|
|
0.74%
|
Return on average
common equity
|
4.77%
|
|
4.06%
|
|
5.10%
|
|
7.30%
|
|
5.52%
|
|
|
|
|
|
|
|
|
|
|
Tangible return on
average tangible common equity
|
5.80%
|
|
4.95%
|
|
6.19%
|
|
9.07%
|
|
6.96%
|
Net interest
margin
|
3.22%
|
|
3.25%
|
|
3.20%
|
|
3.29%
|
|
3.31%
|
|
|
|
|
|
|
|
|
|
|
Ratio of
nonperforming lending-related assets to loans and leases and other
real estate owned
|
0.99%
|
|
0.81%
|
|
0.84%
|
|
0.95%
|
|
1.12%
|
|
|
|
|
|
|
|
|
|
|
Annualized ratio of
net loan and lease charge-offs to average loans
|
(0.17)%
|
|
0.17%
|
|
0.11%
|
|
0.06%
|
|
0.08%
|
|
|
|
|
|
|
|
|
|
|
Ratio of total
allowance for credit losses to loans and leases outstanding
1
|
1.75%
|
|
1.71%
|
|
1.74%
|
|
1.95%
|
|
2.11%
|
|
|
|
|
|
|
Capital Ratios
1
|
|
|
|
|
|
Tangible common
equity ratio
|
9.58%
|
|
9.48%
|
|
9.70%
|
|
8.60%
|
|
8.24%
|
Basel III:
2,3
|
|
|
|
|
|
Common equity tier 1
capital
|
11.81%
|
|
11.82%
|
|
|
|
|
Tier 1
leverage
|
11.77%
|
|
11.59%
|
|
|
|
|
Tier 1 risk-based
capital
|
13.99%
|
|
14.03%
|
|
|
|
|
Total risk-based
capital
|
16.04%
|
|
16.08%
|
|
|
|
|
Basel I:
|
|
|
|
|
|
Tier 1 common
equity
|
|
11.92%
|
|
11.86%
|
|
10.45%
|
|
10.56%
|
Tier 1
leverage
|
|
11.82%
|
|
11.87%
|
|
11.00%
|
|
10.71%
|
Tier 1 risk-based
capital
|
|
14.47%
|
|
14.43%
|
|
13.00%
|
|
13.19%
|
Total risk-based
capital
|
|
16.27%
|
|
16.28%
|
|
14.90%
|
|
15.11%
|
|
|
|
|
|
|
Weighted average
common and common-equivalent shares outstanding
|
202,944,209
|
|
203,277,500
|
|
197,271,076
|
|
185,286,329
|
|
185,122,844
|
Common shares
outstanding 1
|
203,192,991
|
|
203,014,903
|
|
202,898,491
|
|
185,112,965
|
|
184,895,182
|
|
1
At period end.
|
2
Ratios for March 31, 2015 are estimates.
|
3
Basel III capital ratios became effective January 1, 2015 and
are based on a 2015 phase-in. December 31, 2014 ratios are pro
forma.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/zions-bancorporation-reports-earnings-of-037-per-diluted-common-share-for-first-quarter-2015-300068159.html
SOURCE Zions Bancorporation