Q3 2024 Zions Bancorporation NA Earnings Call Transcript
Key Points
- Zions Bancorp NA (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 (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.
- 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 (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.
Greetings, and welcome to the Zions Bancorporation Q3 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. Well, I did turn the conference over to your host Shannon Drage, Thank you. You may begin.
Thank you, Matt, and good evening. We welcome you to this conference call to discuss our 2024, third quarter earnings. My name is Shannon Drage, Senior Director of Investor Relations.
I'd like to remind you that during this call, we will be making forward-looking statements. Although actual results may differ materially. We encourage you to review the disclaimer in the press release or slide 2 of the presentation dealing with forward-looking information and the presentation of non-GAAP measures, which applies equally to statements made during this call. A copy of the earnings release as well as the presentation are available at zionsbancorporation.com.
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