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Why Is Zions (ZION) Down 6.5% Since Last Earnings Report?
ZACKSยท 2025-08-20 16:31
Core Viewpoint - Zions' recent earnings report indicates strong performance with adjusted earnings per share surpassing estimates, driven by higher net interest income and fee income, despite some challenges with rising non-interest expenses [2][4][5] Financial Performance - Adjusted earnings per share for Q2 2025 were $1.58, exceeding the Zacks Consensus Estimate of $1.31, and reflecting a 30.6% increase year-over-year [2] - Net income attributable to common shareholders was $243 million, up 27.9% year-over-year, after accounting for the positive impact from the IPO of SBIC Investment [3] - Net revenues were $851 million, an 8.1% increase year-over-year, and also beat the Zacks Consensus Estimate of $815.5 million [4] Income and Expenses - Net interest income (NII) rose to $648 million, an 8.5% increase, attributed to lower funding costs and an increase in average interest-earning assets [4] - Non-interest income increased by 6.1% to $190 million, driven by growth in most components except for card fees and wealth management fees [5] - Adjusted non-interest expenses rose 3% to $521 million, with an adjusted efficiency ratio improving to 62.2% from 64.5% in the prior year [5] Loan and Deposit Trends - As of June 30, 2025, net loans and leases held for investment were $60.1 billion, up 1.5% from the prior quarter, while total deposits decreased by 2.5% to $73.8 billion [6] Credit Quality - The ratio of non-performing assets to loans and leases increased by 6 basis points year-over-year to 0.51%, with net loan and lease charge-offs of $10 million, down 33.3% from the prior year [7] Profitability and Capital Ratios - The Tier 1 leverage ratio remained stable at 8.5%, while the common equity tier 1 capital ratio improved to 11% from 10.6% in the prior year [8] - Return on average assets was 1.09%, up from 0.91% in the prior year, and return on average tangible common equity increased to 18.7% from 17.5% [9] Future Outlook - Management anticipates a moderate year-over-year increase in NII, driven by earning asset remix and loan growth, with customer-related non-interest income expected to rise moderately due to increased activity [10][11] - Adjusted non-interest expenses are projected to increase moderately, influenced by technology costs and marketing expenses [12] Market Position - Zions has seen upward revisions in estimates, with a consensus shift of 7.83%, and holds a Zacks Rank 1 (Strong Buy), indicating expectations for above-average returns in the coming months [13][15]
SouthState Q2 Earnings & Revenues Beat Estimates, Expenses Rise
ZACKSยท 2025-07-25 17:10
Core Insights - SouthState Corporation (SSB) reported second-quarter 2025 adjusted earnings per share of $2.30, exceeding the Zacks Consensus Estimate of $2.00, and reflecting a 28.5% increase year over year [1][7] - Net income attributable to common shareholders was $215.2 million, up 62.6% year over year [1] Revenue and Expenses - Total revenues for the quarter reached $664.8 million, marking a 56.2% increase year over year and surpassing the Zacks Consensus Estimate by 3.9% [2] - Net interest income (NII) was $577.9 million, up 65% from the prior-year quarter, with the net interest margin rising to 4.02% from 3.44% [2] - Non-interest income was $86.8 million, reflecting a 15.4% increase year over year, driven by most components except for other income and net securities losses [2] - Non-interest expenses surged by 50.8% to $375.1 million, primarily due to merger, branch consolidation, severance-related, and other restructuring expenses [3] Loans and Deposits - As of June 30, 2025, net loans stood at $46.6 billion, up 1.1% from the prior quarter, while total deposits were $53.7 billion, showing a marginal increase [4] Asset Quality - Provision for credit losses was $7.5 million, a significant increase of 92.9% from the prior-year quarter [5] - Allowance for credit losses as a percentage of loans was 1.31%, down 11 basis points year over year [5] - The ratio of annualized net charge-offs to total average loans was 0.21%, up from 0.05% in the year-ago quarter [5] - Non-performing loans to total loans were 0.63%, an increase of 4 basis points from the prior-year quarter [5] Capital Ratios and Profitability Ratios - As of June 30, 2025, the Tier I leverage ratio was 9.2%, down from 9.7% in the year-ago quarter [6] - The Tier 1 common equity ratio decreased to 11.2% from 12.1% in the prior-year quarter [6] - The annualized return on average assets was 1.34%, up from 1.17% in the year-ago period [6] - Return on average common equity was 9.93%, compared to 9.58% in the prior-year quarter [6] Capital Distribution - The company increased its quarterly cash dividend on common stock by 11.1% to 60 cents per share, payable on August 15, 2025, to shareholders of record as of August 8, 2025 [8] Overall Assessment - SSB ended the second quarter positively, with both top and bottom lines rising year over year, supported by increasing NII and non-interest income [9] - Rising loan and deposit balances are encouraging, although high expenses from inorganic expansion efforts may pressure the bottom line [9]
Hilltop Holdings Q2 Earnings Beat on Higher NII, Provisions Fall Y/Y
ZACKSยท 2025-07-25 13:46
Core Insights - Hilltop Holdings Inc. (HTH) reported second-quarter 2025 earnings of 57 cents per share, exceeding the Zacks Consensus Estimate of 41 cents, and reflecting an 83.9% increase from the prior-year quarter [1][9] - The earnings growth was driven by higher net interest income (NII) and a reversal of provisions, although higher non-interest expenses and lower non-interest income, along with a decline in deposits, posed challenges [1][10] Financial Performance - Net income attributable to common stockholders was $36.1 million, representing a 77.4% year-over-year increase, surpassing the estimate of $22.4 million [2] - Net revenues for the second quarter totaled $303.3 million, a 2.1% year-over-year increase, but fell short of the Zacks Consensus Estimate of $307.6 million [3] - NII rose by 6.8% year over year to $110.7 million, exceeding the estimate of $106.1 million, while the net interest margin (NIM) improved to 3.04%, up 12 basis points from the previous year [3] - Non-interest income decreased slightly to $192.6 million, missing the projected $196.3 million, primarily due to declines in most components except for securities commissions and fees [4] - Non-interest expenses increased by 1.8% year over year to $261.2 million, slightly below the estimate of $262.4 million [4] Loan and Deposit Trends - As of June 30, 2025, net loans held for investment were $8 billion, reflecting a 1.3% sequential increase, while total deposits decreased by 4.1% to $10.4 billion [5] Credit Quality and Capital Ratios - Hilltop Holdings experienced a reversal of credit losses amounting to $7.3 million, compared to a provision for credit losses of $10.9 million in the prior-year quarter [6] - Non-performing assets as a percentage of total assets improved to 0.53%, down 17 basis points from the previous year [6] - Return on average assets increased to 0.98% from 0.59% year over year, and return on average stockholders' equity rose to 6.62% from 3.84% [7] - The common equity tier 1 capital ratio improved to 20.74% from 19.45% year over year, while the total capital ratio increased to 23.38% from 22.57% [7] Strategic Outlook - The company's restructuring efforts, improving fee income, and favorable interest rates are expected to support revenue growth, although challenges remain in the Mortgage Origination segment and asset quality [10]
Annaly Q2 Earnings Surpass Estimates, Book Value Declines Y/Y
ZACKSยท 2025-07-24 15:41
Core Insights - Annaly Capital Management, Inc. (NLY) reported second-quarter 2025 adjusted earnings available for distribution (EAD) per average share of 73 cents, exceeding the Zacks Consensus Estimate of 72 cents and up from 68 cents in the same quarter last year [1][9] - The average yield on interest-earning assets improved to 5.42% from 5.17% year-over-year, while the net interest spread increased to 1.47% from 1.24% [3][9] - The company's book value per share (BVPS) declined to $18.45 from $19.25 year-over-year, raising concerns about its financial health [4][9] Financial Performance - Net interest income (NII) for the quarter was $273.2 million, missing the Zacks Consensus Estimate by 33.5%, compared to $53.6 million in the prior-year quarter [2] - Total assets at the end of the second quarter reached $112.1 billion, reflecting a 6.7% increase from the previous quarter [2] - The economic capital ratio decreased slightly to 14.3% from 14.4% year-over-year [4] Key Ratios - The average economic costs of interest-bearing liabilities rose to 3.94% from 3.90% in the prior-year quarter [3] - The weighted average actual constant prepayment rate increased to 8.7% from 7.4% year-over-year [4] - Economic leverage remained stable at 5.8X as of June 30, 2025, unchanged from the previous year [4] Return Metrics - Annaly generated an annualized EAD return on average equity of 14.86% in the second quarter, up from 13.36% in the same quarter last year [5]
BOK Financial's Q2 Earnings Beat on NII & Loan Growth, Stock Gains
ZACKSยท 2025-07-22 17:26
Core Insights - BOK Financial Corporation (BOKF) reported better-than-expected second-quarter 2025 results, with earnings per share of $2.19, surpassing the Zacks Consensus Estimate of $1.98, although this represents a 13.8% decline from the prior-year quarter [1][8] Financial Performance - The company's net income attributable to shareholders was $140 million, down 14.5% year over year [2] - Quarterly net revenues totaled $535.2 million, a decline of 3.6% year over year, but exceeded the Zacks Consensus Estimate of $517.9 million [3] - Net interest income increased by 10.8% year over year to $328.2 million, with the net interest margin expanding by 24 basis points to 2.80% [3] - Total fees and commissions decreased by 1.3% year over year to $197.3 million, primarily due to lower brokerage and trading revenues [3] Expense and Efficiency Metrics - Total operating expenses rose to $354.5 million, an increase of 5.3% year over year, mainly driven by higher personnel costs [4] - The efficiency ratio increased to 65.42% from 59.83% in the prior year, indicating a deterioration in profitability [4] Loan and Deposit Trends - As of June 30, 2025, total loans reached $24.3 billion, reflecting a 2.5% increase from the prior quarter, driven by growth in commercial real estate loans and loans to individuals [5] - Total deposits slightly declined to $38.2 billion, attributed to reduced demand and savings [5] Credit Quality and Capital Ratios - Non-performing assets decreased to $81 million, or 0.33% of outstanding loans, down from $93 million or 0.38% in the prior-year quarter [6] - The company recorded no provisions for credit losses, compared to $8 million in the prior-year quarter, with net charge-offs down 91.9% to $561 thousand [6] - As of June 30, 2025, the common equity Tier 1 capital ratio improved to 13.59%, up from 12.10% a year earlier [7] Profitability Ratios - Return on average equity was 9.70%, down from 12.79% in the year-ago quarter, while return on average assets decreased to 1.07% from 1.29% [9] Share Repurchase Activity - During the reported quarter, BOK Financial repurchased 663,298 shares at an average price of $93.99 per share [10] Overall Assessment - The solid loan balance is expected to support top-line growth, while improving asset quality is a positive factor amid a challenging operating environment; however, rising operating expenses present a near-term concern [11]
KeyCorp's Q2 Earnings Beat Estimates, NII & Fee Income Rise Y/Y
ZACKSยท 2025-07-22 16:35
Core Insights - KeyCorp's second-quarter 2025 earnings per share from continuing operations was 35 cents, exceeding the Zacks Consensus Estimate by one cent and reflecting a 40% increase year-over-year [1][10] - The results were driven by a rise in net interest income (NII) and non-interest income, although higher expenses and increased provisions posed challenges [1][10] Financial Performance - Net income from continuing operations attributable to common shareholders reached $387 million, marking a 63.3% year-over-year increase [2] - Total revenues rose 20.9% year-over-year to $1.83 billion, surpassing the Zacks Consensus Estimate of $1.80 billion [3] - NII (on a tax-equivalent basis) increased 27.9% year-over-year to $1.15 billion, with the net interest margin expanding 62 basis points to 2.66% [4] - Non-interest income was $690 million, up 10% year-over-year, driven by increases in most fee income components [6] - Non-interest expenses increased 7% year-over-year to $1.15 billion, attributed to rising costs across nearly all components [7] Loan and Deposit Trends - Average total loans at the end of the second quarter were $105.72 billion, up 1.3% from the previous quarter [8] - Average total deposits were $147.45 billion, showing a slight decline due to reduced higher-cost commercial client balances and retail CDs [8] Credit Quality - The provision for credit losses was $138 million, up 38% year-over-year, with net loan charge-offs as a percentage of average total loans rising to 0.39% [9][10] - The allowance for loan and lease losses decreased by 6.5% year-over-year to $1.45 billion, while non-performing assets as a percentage of total loans fell to 0.66% [11] Capital Ratios - KeyCorp's tangible common equity to tangible assets ratio improved to 7.8% as of June 30, 2025, up from 5.2% in the same period of 2024 [12] - The Tier 1 risk-based capital ratio increased to 13.4%, up from 12.2%, and the Common Equity Tier 1 ratio rose to 11.7%, up from 10.5% [12] Strategic Outlook - The company is expected to benefit from decent loan balances, balance sheet repositioning efforts, strategic buyouts, and relatively higher interest rates in the near term [13]
Huntington Q2 Earnings Match Estimates, NII Rises Y/Y, Fee Income Down
ZACKSยท 2025-07-18 16:26
Core Insights - Huntington Bancshares Incorporated (HBAN) reported second-quarter 2025 adjusted earnings per share (EPS) of 38 cents, matching the Zacks Consensus Estimate and up from 30 cents in the prior-year quarter [1][7] - The company experienced a $58 million decrease in pre-tax earnings due to securities repositioning, impacting EPS by 4 cents [1] Financial Performance - Net income attributable to common shareholders (GAAP basis) was $536 million, an increase from $474 million in the prior-year quarter [2] - Total quarterly revenues increased 10.8% year over year to $2.01 billion, surpassing the Zacks Consensus Estimate of $1.98 billion [3] - Net interest income (NII) rose 12% year over year to $1.48 billion, driven by higher average earning assets and a net interest margin (NIM) increase of 12 basis points to 3.11% [3][7] - Non-interest income decreased 4% year over year to $471 million, while non-interest expenses rose 7% to $1.19 billion, primarily due to higher personnel and marketing costs [4][7] Loans and Deposits - Average loans and leases increased 2% sequentially to $133.2 billion as of June 30, 2025 [5] - Average total deposits rose 1% to $163.4 billion [5] Credit Quality - Net charge-offs were $66 million, down from $90 million in the prior-year quarter, with a net charge-off ratio of 0.20%, down from 0.29% [6] - The allowance for credit losses increased 3.8% to $2.52 billion, while total non-performing assets rose 9.2% to $852 million [6] Capital Ratios - The common equity tier 1 risk-based capital ratio was 10.5%, up from 10.4% in the prior-year period [9] - The regulatory Tier 1 risk-based capital ratio decreased to 11.8% from 12.1% in the comparable period in 2024 [9] - The tangible common equity to tangible assets ratio increased to 6.6% from 6% in the prior-year quarter [9] Strategic Outlook - The company's inorganic expansion efforts are expected to bolster revenue growth in the near term, with a focus on enhancing commercial banking capabilities in key growth markets [10]
Webster Financial Tops Q2 Earnings on Higher Fee Income, Stock Gains
ZACKSยท 2025-07-18 16:01
Core Viewpoint - Webster Financial (WBS) reported strong second-quarter 2025 earnings, with EPS of $1.52, surpassing the Zacks Consensus Estimate of $1.41 and up from $1.26 a year ago [1][8] Financial Performance - Net income applicable to common shareholders was $251.7 million, reflecting a 43.4% increase from the prior-year quarter [2] - Total revenues increased 16.5% year over year to $715.8 million, exceeding the Zacks Consensus Estimate by 0.6% [3] - Net interest income (NII) rose 8.5% year over year to $621.2 million, with a net interest margin of 3.44%, up five basis points [3] - Non-interest income significantly increased to $94.7 million from $42.3 million a year ago, excluding prior losses on investment securities [4] Expenses and Efficiency - Non-interest expenses were $345.7 million, up 6% from the previous year, driven by risk management investments and increased compensation [5] - The efficiency ratio improved to 45.40% from 46.22% in the prior-year quarter, indicating enhanced profitability [5] Loans and Deposits - Total loans and leases increased 1.2% sequentially to $53.7 billion, while total deposits rose 1% to $66.3 billion as of June 30, 2025 [6][8] Credit Quality - Total non-performing assets were $537.1 million, up 43.3% from the year-ago quarter, with an allowance for loan losses at 1.35% of total loans [7] - The provision for credit losses decreased by 21.2% year over year to $46.5 million [7] Capital Ratios - The Tier 1 risk-based capital ratio improved to 11.84% from 11.00% a year ago, and the total risk-based capital ratio rose to 14.03% from 13.28% [9] Profitability Ratios - Return on average assets was 1.29%, up from 0.96% in the prior-year quarter, and return on average common stockholders' equity increased to 11.31% from 8.40% [10] Strategic Outlook - Rising NII and non-interest income are expected to enhance Webster Financial's top line, supported by strategic buyouts and growth in deposits and loans, although elevated expenses pose a near-term concern [11]
Bank OZK's Q2 Earnings Beat on Higher Fee Income & NII, Stock Up 1.5%
ZACKSยท 2025-07-18 15:41
Core Viewpoint - Bank OZK reported better-than-expected quarterly results, with earnings per share of $1.58, surpassing estimates and reflecting a 3.9% year-over-year increase [1][9] Financial Performance - Net income available to common shareholders was $178.9 million, up 3.1% from the prior year, exceeding the estimate of $162.9 million [2] - Net revenues reached $428 million, a 2.7% increase year-over-year, beating the Zacks Consensus Estimate of $417.7 million [3] - Net interest income (NII) was $396.7 million, up 2.3% year-over-year, surpassing the estimate of $379.1 million [3] - Non-interest income increased to $31.3 million, an 8.7% rise year-over-year, although slightly below the estimate of $32.2 million [4] - Non-interest expenses rose to $153.2 million, an 11.4% increase from the prior year, exceeding the expected $150.2 million [4] Efficiency and Credit Quality - The efficiency ratio increased to 35.53%, up from 32.67% in the prior year, indicating a decline in profitability [5] - Total loans amounted to $33 billion, a 6.1% sequential increase, while total deposits reached $33.5 billion, up 5% [5] - Net charge-offs to average total loans were 0.10%, down 7 basis points year-over-year, and provision for credit losses decreased by 28.2% to $35.2 million [6] Profitability Ratios - Return on average assets was 1.81%, down from 1.92% in the previous year, and return on average common equity fell to 12.98% from 13.98% [7] Share Repurchase Program - Bank OZK repurchased 1.12 million shares for $43.2 million during the quarter and announced a new repurchase program worth $200 million effective July 1, 2025 [10] Industry Context - Other banks, such as Commerce Bancshares Inc. and Hancock Whitney Corp., also reported positive earnings, benefiting from increases in NII and non-interest income, although they faced challenges from higher provisions and expenses [12][13]
CBSH Q2 Earnings Beat Despite Higher Expenses, Provisions
ZACKSยท 2025-07-17 18:00
Core Viewpoint Commerce Bancshares Inc. (CBSH) reported strong second-quarter 2025 earnings, driven by increased net interest income and non-interest income, despite facing higher expenses and provisions for credit losses. Financial Performance - Earnings per share (EPS) for Q2 2025 was $1.14, exceeding the Zacks Consensus Estimate of $1.02, and reflecting a 10.7% increase year over year [1][9] - Net income attributable to common shareholders was $152.5 million, up 9.3% from the previous year, surpassing the estimate of $128.5 million [2] Revenue and Income Breakdown - Total revenues reached $445.8 million, a 7.5% increase year over year, exceeding the Zacks Consensus Estimate of $430.4 million [3] - Net interest income (NII) was $280.1 million, up 6.8% from the prior year, also surpassing the estimate of $265.7 million [3] - Non-interest income increased to $165.6 million, an 8.8% rise year over year, driven by growth in most components except for bank card transaction fees and loan fees [4] Expense Analysis - Non-interest expenses rose 5.3% year over year to $244.4 million, attributed to increases in nearly all cost components [4] - The efficiency ratio improved to 54.77% from 55.95% in the previous year, indicating enhanced profitability [5] Loan and Deposit Trends - As of June 30, 2025, net loans were $17.50 billion, a 1.7% increase from the prior quarter, while total deposits declined 1.3% to $25.49 billion [6] Asset Quality - Provision for credit losses was $5.6 million, a 2.4% increase year over year, with the allowance for credit losses on loans to total loans at 0.94% [7] - The ratio of annualized net loan charge-offs to total average loans decreased to 0.22% from 0.23% [7] Capital Ratios and Profitability - The Tier I leverage ratio improved to 12.75% from 12.13% year over year, and the tangible common equity to tangible assets ratio increased to 10.86% from 9.82% [10] - Return on total average assets was 1.95%, up from 1.86% in the prior year, while return on average equity decreased to 17.40% from 18.52% [10] Share Repurchase Activity - In the reported quarter, the company repurchased 0.17 million shares at an average price of $60.54 [11] Strategic Developments - Commerce Bancshares announced an agreement to acquire FineMark Holdings for $585 million, expected to close on January 1, 2026, subject to regulatory approval [12] - The acquisition is projected to be 6% accretive to CBSH's 2026 GAAP earnings, with anticipated cost savings of 15% of FineMark's non-interest expenses [13]