Net Interest Margins Widened As we move forward in 2024, the cost of funds has about peaked, while more and more new loans come with a higher yield. Cost of funds here was 2.11%, 5 basis points higher than in the sequential Q1. Coupled with the big yields on loans, which hit 5.31%, 50 basis points higher than a year ago, the net interest margin widened to 2.98% versus 2.92% a year ago. The margins were also up from the sequential Q1, which was 2.94%. While new loans are going out at a higher rate, the impac ...

Shares of Zions Bancorporation (ZION) gained 3.1% in the after-market session in response to better-thanexpected second-quarter 2024 results. Adjusted net earnings per share (EPS) of $1.21 surpassed the Zacks Consensus Estimate of $1.10. Moreover, the bottom line increased 9% from the year-ago quarter. Results were primarily aided by lower provisions and higher net interest income (NII). Also, higher loans and deposits were other positives. However, a decline in non-interest income and a rise in adjusted no ...

Core Viewpoint - Zions Bancorporation has demonstrated solid performance with a 33% increase in shares over the past year, supported by strong Q2 results and an upgrade to a buy rating due to significant liquidity and strong underwriting results [14][26]. Financial Performance - Net interest income rose by $11 million from Q1 and increased by 1% year-over-year, with a net interest margin (NIM) of 2.98%, the highest level in over a year [3][17]. - Total deposits increased by approximately 1% or $800 million during the quarter, although the cost of deposits rose by 5 basis points [6][19]. - Zions earned $1.28 per share in Q2, beating consensus estimates by $0.18, with adjusted earnings of $1.21, reflecting a 9% increase from the previous year [15]. Loan and Deposit Dynamics - Average loans rose by 0.7%, primarily driven by consumer borrowings, while business and commercial real estate (CRE) loans remained stable [8]. - Noninterest-bearing deposits (NIB) declined by $400 million, but the pace of decline has improved, indicating a potential bottoming out before year-end [7]. Credit Quality and Risk Management - Zions reported a low net charge-off rate of 0.1% in Q2, with a nonperforming asset rate of 0.46%, indicating strong credit quality [23]. - The bank has a well-diversified commercial real estate portfolio with a loan-to-value ratio below 60%, mitigating risks associated with potential defaults [11][23]. Outlook and Growth Expectations - The company expects modest loan growth and a slight increase in net interest income, projecting a 6.3% rise over the next year [21]. - Zions is well-capitalized with a common equity tier 1 (CET1) capital ratio of 10.6%, positioning it favorably against regulatory scrutiny as it approaches the $100 billion asset threshold [24]. Strategic Positioning - Zions is viewed as a potential candidate for bank consolidation in the next 3-5 years, with expectations of becoming a tuck-in acquirer rather than being acquired [24]. - The bank's decentralized business model allows for strong underwriting results and minimal credit losses, despite some higher expenses [15][23].

Zions Bancorporation, National Association (NASDAQ:ZION) Q2 2024 Earnings Conference Call July 22, 2024 5:30 PM ET Company Participants Shannon Drage - Senior Director of IR Harris Simmons - Chairman and CEO Ryan Richards - CFO Scott McLean - President and COO Conference Call Participants Manan Gosalia - Morgan Stanley John Pancari - Evercore ISI Ben Gerlinger - Citi Steven Alexopoulos - JPMorgan Ken Usdin - Jefferies Bernard Von Gizycki - Deutsche Bank Brandon King - Truist Securities Chris McGratty - KBW ...

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here i ...

SALT LAKE CITY, July 22, 2024 /PRNewswire/ -- Zions Bancorporation, N.A. (NASDAQ: ZION) ("Zions" or "the Bank") today reported net earnings applicable to common shareholders for the second quarter of 2024 of $190 million, or $1.28 per diluted common share, compared with net earnings applicable to common shareholders of $166 million, or $1.11 per diluted common share, for the second quarter of 2023, and net earnings applicable to common shareholders of $143 million, or $0.96 per diluted common share, for the ...

| --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | Harris H. Simmons, Chairman and CEO of Zions Bancorporation, commented, "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 ca ...

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. Revenues are expected to be $761.11 million, down 3.8% from the year-ago quarter. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 22. On the other hand, if th ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ COMMISSION FILE NUMBER 001-12307 ZIONS BANCORPORATION, NATIONAL ASSOCIATION (Exact name of registrant as specified in its charter) United States ...

Financial Data and Key Metrics Changes - The company reported net earnings of $143 million for the quarter, with diluted earnings per share of $0.96, up $0.18 from the prior quarter [18][20] - Adjusted revenue decreased by 11% compared to the prior year and was stable versus the fourth quarter [26] - The common equity Tier 1 ratio improved to 10.4% from 10.3% in the previous quarter [19] Business Line Data and Key Metrics Changes - Net interest income improved slightly from the prior quarter as the repricing of earning assets outpaced rising funding costs [23] - Customer-related non-interest income was $151 million, slightly up from $150 million in the prior quarter, driven by higher capital markets fees [26] - Adjusted non-interest expense increased by $22 million to $511 million, largely due to seasonal increases in compensation [27] Market Data and Key Metrics Changes - Average loans increased by 1% in the current quarter, with loan demand and customer sentiment improving somewhat [28] - Customer deposit balances declined approximately 1% in the quarter due to seasonal outflows [18] - The loan-to-deposit ratio was 78%, with net charge-offs at just 4 basis points, down from 6 basis points in the prior quarter [19][35] Company Strategy and Development Direction - The company is focused on growing its customer base, particularly in small business lending, and has seen success with a streamlined SBA program [14] - The completion of the core deposit system migration is expected to enhance digital capabilities and improve customer service [10] - The company aims to grow fee income as a larger percentage of total revenue, with capital markets fees representing a key opportunity [15] Management's Comments on Operating Environment and Future Outlook - Management noted that revenue growth remains a challenge, with adjusted revenue down 11% year-over-year, but expressed optimism about improving loan demand [13] - The company anticipates a positive trajectory for net interest margin and credit performance, which should enhance shareholder returns [17] - Management is confident in the adequacy of loan loss reserves, particularly in the commercial real estate portfolio, despite some credit deterioration indicators [48][49] Other Important Information - The company received 20 national excellence awards from Greenwich Associates, ranking third among U.S. banks [11] - The investment portfolio is expected to decline over the near term, providing a source of funds for the balance sheet [31] Q&A Session Summary Question: Can you dig into the NII guide and the assumptions regarding rate cuts? - Management indicated that the base expectation includes three rate cuts, but they are monitoring indicators suggesting fewer cuts may occur [40][41] Question: On the credit front, how confident are you in the adequacy of the loan loss reserve? - Management expressed confidence in the current level of reserves, noting that losses remain manageable and are supported by conservative underwriting practices [48][49] Question: Can you provide color on the increase in C&I classified loans? - The increase was attributed to specific credits experiencing slower lease-up and higher expenses, with no significant large-scale issues identified [86] Question: What are your expectations on further bringing down wholesale borrowing for this year? - Management expects to continue reducing wholesale borrowing, contingent on deposit growth and loan demand [68] Question: How do you see the mix of earning assets evolving? - The company anticipates continued attrition in the investment securities portfolio, with a focus on reinvesting in loans [72]