Zions Bancorp NA (ZION) Q3 2024 Earnings Call Highlights: Strong Earnings Growth Amid Rising ...

GuruFocus News
4 min read

In This Article:

  • Net Earnings: $204 million, an increase of $14 million due to higher revenues and lower expenses.

  • Customer Deposits: Increased by 1.5% point-to-point for the quarter.

  • Net Interest Margin: Expanded by 5 basis points in the quarter, and improved by 10 basis points compared to the year-ago quarter.

  • Loan Growth: Less than 1% for the quarter.

  • Net Charge Offs: 2 basis points annualized as a percentage of average loans for the quarter.

  • Common Equity Tier-One Ratio: 10.7%, compared to 10.6% in the previous quarter and 10.2% a year ago.

  • Diluted Earnings Per Share: $1.37, up $0.09 or 7% from the prior quarter and 21% from the year-ago period.

  • Adjusted Preprovision Net Revenue: $299 million, up from $278 million in the second quarter.

  • Customer Related Non-Interest Income: $161 million, compared to $154 million in the prior quarter.

  • Adjusted Non-Interest Expense: Decreased by $7 million to $499 million.

  • Average Loan Growth: Slight increase in the quarter.

  • Cost of Total Deposits: Increased by 3 basis points to 2.14%.

  • Non-Performing Assets: Increased by $103 million to $306 million, representing 62 basis points of loans and other real estate owned.

  • Allowance for Credit Losses: Increased by 1 basis point to 1.25% of total loans and leases.

Release Date: October 21, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Zions Bancorp NA (NASDAQ:ZION) reported net earnings of $204 million for the quarter, an improvement of $14 million due to higher revenues and lower expenses.

  • The company saw a 1.5% increase in customer deposits, with non-interest bearing demand deposits rising by 1%.

  • Net interest margin expanded by 5 basis points in the quarter, driven by higher earning asset yields and stable funding costs.

  • Zions Bancorp NA (NASDAQ:ZION) announced an agreement to acquire four branches from First Bank, adding approximately $730 million in deposits and $420 million in loans, which will strengthen its market position.

  • The company's capital markets division had a record quarter, contributing to strong customer-related fee income growth.

Negative Points

  • Classified loan balances increased by $829 million, primarily due to downgrades in the multifamily portfolio affected by higher interest rates and rent concessions.

  • Non-performing assets rose by $103 million to $306 million, driven by a small number of commercial and real estate credits.

  • The allowance for credit losses increased slightly, reflecting ongoing credit quality concerns.

  • Zions Bancorp NA (NASDAQ:ZION) experienced a slight decline in average non-interest bearing deposit balances.

  • The company anticipates moderate headwinds from the refinancing of real estate assets, which could impact future performance.

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