On July 22, 2024, Zions Bancorp NA (ZION, Financial) released its 8-K filing for the second quarter of 2024, reporting net earnings of $190 million and diluted earnings per share (EPS) of $1.28. This performance surpasses the analyst estimates of $1.09 EPS and $759.38 million in revenue.
Company Overview
Zions Bancorporation is a regional U.S. bank headquartered in Salt Lake City, operating primarily in the Western and Southwestern United States. The bank focuses on providing banking services to small and midsize businesses, with a significant portion of its loans directed towards commercial and commercial real estate lending.
Performance Highlights
For the second quarter of 2024, Zions Bancorp NA (ZION, Financial) reported:
| Metric | Q2 2024 | Q2 2023 | Q1 2024 |
|---|---|---|---|
| Net Earnings | $190 million | $166 million | $143 million |
| Diluted EPS | $1.28 | $1.11 | $0.96 |
| Net Interest Margin (NIM) | 2.98% | 2.92% | N/A |
| Common Equity Tier 1 Ratio | 10.6% | 10.0% | N/A |
Financial Achievements
Zions Bancorp NA (ZION, Financial) demonstrated notable financial achievements in the second quarter:
- Net interest income increased by 1% to $597 million, driven by higher earning asset yields.
- Loans and leases grew by 3% to $58.4 billion, reflecting strong demand in commercial real estate and residential portfolios.
- Customer deposits (excluding brokered deposits) rose by 5% to $69.5 billion.
- The provision for credit losses significantly decreased to $5 million from $46 million in the prior year period.
Operational Metrics
Key operational metrics for Zions Bancorp NA (ZION, Financial) include:
- Pre-provision net revenue (PPNR) was $278 million, down 2% year-over-year.
- Customer-related noninterest income decreased by 5% to $154 million.
- Noninterest expense remained stable at $509 million, with adjusted noninterest expense up by 2% to $506 million.
CEO Commentary
"Second quarter results demonstrated continued improvement in our net interest margin, effective expense management, strong credit quality as reflected in continued low loan losses, and strengthened capital. Notably, tangible book value per share has increased by 20% over the year-ago period." - Harris H. Simmons, Chairman and CEO of Zions Bancorporation.
Balance Sheet Analysis
On the balance sheet front, Zions Bancorp NA (ZION, Financial) reported:
- Total investment securities decreased by 9% to $19.6 billion.
- Allowance for credit losses was $726 million, representing 1.24% of loans and leases.
- Total deposits decreased by 1% to $73.8 billion, while short-term borrowings increased by 3% to $5.7 billion.
Conclusion
Zions Bancorp NA (ZION, Financial) has shown robust financial performance in the second quarter of 2024, exceeding analyst expectations and demonstrating strong operational metrics. The bank's focus on effective expense management, credit quality, and capital strength positions it well for future growth. For more detailed insights, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Zions Bancorp NA for further details.
