Zions Bancorporation reports $143M Q1 earnings

Zions Bancorporation, N.A. has released its first quarter 2024 financial results, reporting a net earnings of $143 million and diluted earnings per share of $0.96. This is a decrease from the first quarter of 2023, where the net earnings were $198 million and the diluted EPS was $1.33. Moreover, it also represents an increase from the fourth quarter of 2023, where the net earnings were $116 million and the diluted EPS was $0.78.

The net interest income was reported at $586 million, down 14% from the previous year, while the net interest margin (NIM) was 2.94%, compared to 3.33% in the first quarter of 2023 and 2.91% in the fourth quarter of 2023. Notably, the provision for credit losses decreased to $13 million from $45 million in the first quarter of 2023.

Total deposits increased by 7% to reach $74.2 billion, with a significant shift from noninterest-bearing demand deposits to interest-bearing deposits due to the higher interest rate environment. Additionally, loans and leases experienced growth, reaching $58.1 billion, up 3% from the previous year.

The Chairman and CEO, Harris H. Simmons, highlighted the adverse impact on net interest income due to bank failures from the previous year. He also mentioned a slight increase in classified loans during the quarter, particularly in the commercial real estate portfolio, although he expressed confidence that the ultimate realized loan losses would be manageable.

In terms of noninterest expense, total noninterest expense increased by 3% compared to the prior year quarter, primarily driven by deposit insurance and regulatory expenses, as well as technology, telecom, and information processing expenses. However, adjusted noninterest expense remained relatively flat at $511 million.

The press release also detailed changes in the investment securities portfolio, which decreased by 10% to $20.2 billion, and provided insights into the credit quality, with an increase in the allowance for credit losses and a rise in nonperforming assets.

The market has reacted to these announcements by moving the company's shares 2.9% to a price of $41.06. If you want to know more, read the company's complete 8-K report here.

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