ZION Zions Bancorporation NA

SALT LAKE CITY, Oct. 19, 2015 /PRNewswire/ -- Zions Bancorporation (NASDAQ: ZION) ("Zions" or "the Company") today reported third quarter net earnings applicable to common shareholders of $84.2 million, or $0.41 per diluted common share, compared to a net loss applicable to common shareholders of $(1.1) million, or $(0.01) per diluted common share, for the second quarter of 2015. The Company's second quarter results included a $137 million loss, or $0.42 per diluted share, from the sale of remaining collateralized debt obligation ("CDO") securities. Excluding this loss, net earnings applicable to common shareholders was $83.4 million, or $0.41 per diluted common share, for the second quarter of 2015.

The following is an abbreviated version of the 2015 third quarter earnings release. For the full version, including financial tables, please visit zionsbancorporation.com.

Third Quarter 2015 Highlights

• Total noninterest expense was $396 million during the third quarter and $1,198 million year-to-date, compared to $404 million and $802 million reported last quarter. As previously committed, the Company is on track to achieve 50% of its target gross $120 million expense reduction by the end of 2015 and to hold adjusted noninterest expense below $1.6 billion in 2015.
  
  
• The efficiency ratio improved to 69.5% during the third quarter, compared to 71.4% during the second quarter, reflecting the Company's commitment to have this ratio be at or less than 70% for the second half of 2015.
  
  
• Overall credit quality remained in line with expectations, with moderate deterioration in energy loans and continued strength in other loans. When compared to the prior quarter's level, classified loans increased 2%, nonperforming assets declined 4%, net charge-offs excluding energy loans were stable, and the allowance for credit losses remained relatively unchanged.
  
  
• Energy loan net charge-offs were $17 million during the third quarter; there were no energy loan net charge-offs during the second quarter. The Company increased the allowance for credit losses on its energy portfolio in part due to the substantial decline in energy prices during the third quarter. This contributed to an increased provision for loan losses of $18.3 million during the third quarter, compared to $0.6 million during the second quarter. The overall performance of the energy loan portfolio has been substantially consistent with the Company's initial communications in late 2014, which concluded that some deterioration was expected from declining energy prices; however, disciplined underwriting and strong reserves will keep the impact relatively modest to net charge-offs and overall profitability.
  
  
• Net interest income increased slightly from the prior quarter while the net interest margin declined to 3.11% from 3.18%, primarily driven by an increased concentration of cash and securities and a decline in the yield of the loan portfolio attributable primarily to the waning benefit from loans purchased from the FDIC in 2009.
  
  
• Loans held for investment increased $89 million during the third quarter. Excluding the effect of attrition in energy-related loans and the National Real Estate portfolio, loans increased $285 million during the third quarter, compared to a $259 million increase during the second quarter calculated on the same basis.

"We're continuing to make solid progress in achieving our goals with respect to improved operating efficiency while building a very strong balance sheet and investing in systems and processes that will allow us to provide exceptional service to our customers," said Harris H. Simmons, chairman and chief executive officer. "We've received regulatory approval to consolidate our seven subsidiary banks under a single national bank charter, which we expect to complete on December 31 of this year. We will continue to emphasize our locally-oriented leadership structure and the power of our strong local brands in each market we serve. We are simultaneously streamlining our risk and credit organizations and enhancing local credit decision-making authority. The consolidation of our bank charters will facilitate a simpler and more responsive operating environment and the realization of efficiencies more quickly and in greater measure than is possible under the status quo."

Mr. Simmons concluded, "While loan growth has been sluggish in the current environment, we are encouraged by the Company's credit quality metrics, with only modest deterioration in the level of classified loans and net charge-offs that are in line to better than peer average levels. The Company's funding profile, loss reserves and capital levels also remain very strong relative to peers."

Supplemental Presentation and Conference Call 
Zions has posted a supplemental presentation to its website, which will be used to discuss these third quarter results at 5:30 p.m. ET this afternoon (October 19, 2015). Media representatives, analysts, investors, and the public are invited to join this discussion by calling 253-237-1247 (domestic and international) and entering the passcode 56565783, 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.

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SOURCE Zions Bancorporation