ZIONS BANCORPORA(ZIONP) - 2024 Q2 - Quarterly Report

Financial Performance - Diluted earnings per share (EPS) increased to $1.28, up from $1.11 in Q2 2023[19] - Net income for the six months ended June 30, 2024, was $354 million, a decrease of 6.58% compared to $379 million for the same period in 2023[172] - Comprehensive income for the three months ended June 30, 2024, was $261 million, compared to $165 million for the same period in 2023, an increase of 58.79%[172] - The company reported a basic net earnings per common share of $1.28 for the three months ended June 30, 2024, compared to $1.11 for the same period in 2023, an increase of 15.32%[171] Interest Income and Margin - Net interest income rose by $6 million, or 1%, with a net interest margin of 2.98%, compared to 2.92%[19] - Net interest income for Q2 2024 was $597 million, a 1% increase from $591 million in Q2 2023[20] - The yield on average interest-earning assets rose to 5.31% in Q2 2024, an increase of 50 basis points from 4.81% in Q2 2023, driven by higher interest rates and a favorable asset mix[21] - The net interest margin (NIM) improved to 2.98% in Q2 2024, compared to 2.92% in Q2 2023, reflecting higher earning asset yields[20] Loans and Leases - Total loans and leases grew by $1.5 billion, or 3%, driven by increases in residential mortgage and commercial real estate portfolios[19] - Average loans and leases increased by $1.6 billion, or 3%, to $58.3 billion, primarily due to growth in consumer and commercial real estate loans[27] - Total loans and leases increased to $58,415 million as of June 30, 2024, compared to $57,779 million at December 31, 2023, reflecting a growth of 1.1%[203] - The total commercial real estate loans reached $13,549 million as of June 30, 2024, compared to $13,371 million at December 31, 2023, reflecting a growth of 1.3%[203] Deposits - Customer deposits (excluding brokered deposits) increased by $3.6 billion, or 5%, reaching $69.5 billion[19] - Average deposits increased by $4.5 billion, or 7%, to $74.2 billion, with the average cost of deposits rising to 2.11% from 1.27% in the prior year[31] - Total deposits decreased to $73,770 million as of June 30, 2024, down from $74,961 million at December 31, 2023, a decline of 1.59%[170] Credit Quality - The provision for credit losses decreased to $5 million from $46 million in the prior year period[19] - The allowance for credit losses (ACL) was $726 million as of June 30, 2024, compared to $711 million at the same date in 2023, reflecting a year-over-year increase primarily due to portfolio-specific risks and average loan growth of $1.6 billion[40] - The ratio of allowance for credit losses to net loans and leases at period end was 1.24% for June 30, 2024, compared to 1.26% for December 31, 2023[113] - Net loan and lease charge-offs totaled $15 million, or 0.10% of average loans, compared to $13 million, or 0.09%, in the prior year[19] Noninterest Income and Expense - Noninterest income related to customers fell by $8 million, or 5%, primarily due to declines in capital markets fees[19] - Total noninterest income decreased by $10 million, or 5%, year-over-year, accounting for approximately 23% of net revenue in Q2 2024 compared to 24% in Q2 2023[49] - Noninterest expense remained stable at $509 million, with increases in technology expenses offset by lower salaries and benefits[19] Capital Management - At June 30, 2024, total shareholders' equity increased by $334 million, or 6%, to $6.0 billion compared to $5.7 billion at December 31, 2023[155] - The company exceeded all capital adequacy requirements under the Basel III capital rules as of June 30, 2024[160] - Common equity tier 1 capital increased to $7,057 million as of June 30, 2024, up from $6,863 million in December 2023, reflecting a growth of 2.8%[161] Asset and Liability Management - Total assets increased to $87,606 million as of June 30, 2024, compared to $87,060 million in March 2024, reflecting growth in the asset base[167] - The ratio of available liquidity to uninsured deposits was 125% as of June 30, 2024, compared to 122% at December 31, 2023[148] - Total liabilities as of June 30, 2024, were $6,033 million, with a net amount of $6,020 million after adjustments[190] Securities and Investments - Total held-to-maturity and available-for-sale investment securities decreased by $1.0 billion, or 5%, from December 31, 2023, totaling $22.8 billion at June 30, 2024[62] - The fair value of held-to-maturity investment securities was $9,891 million as of June 30, 2024, compared to $10,466 million as of December 31, 2023[189] - The total unrealized losses for AFS securities amounted to $1,734 million as of June 30, 2024[194] Cash Flow and Financing Activities - Net cash provided by operating activities for the six months ended June 30, 2024, was $512 million, down from $819 million in 2023[176] - Net cash used in investing activities for the six months ended June 30, 2024, was $(407) million, compared to a net cash provided of $1,780 million in 2023[176] - The bank repurchased $35 million of common stock during the six months ended June 30, 2024, down from $50 million in 2023[176]