Zions Bancorp misses quarterly earnings estimates
Zions Bancorp, parent company of Nevada State Bank, posted second-quarter earnings Monday that missed Wall Street expectations, as the company’s expenses and total loans increased.
The Salt Lake City-based bank holding company reported net income of $55.4 million, compared with $55.2 million for the second quarter of 2012. Earnings for the second quarter were 30 cents a share, same as last year.
Revenue increased 0.1 percent to $555.8 million.
On average, 26 analysts polled by Yahoo Finance expected Zions to earn 41 cents per share on revenue of $552 million.
“We are pleased with the continued growth in loans this quarter, and with the progress that we made toward replacing expensive capital and financing issued during the recent crisis with significantly lower cost instruments,” Zions Bancorp Chairman and CEO said Harris Simmons said.
Zions reported its second-quarter earnings after it redeemed trust-preferred securities and refinanced debt. The results include an after-tax extinguishment cost of $24.9 million, or 14 cents a share, tied to the trust preferred redemption.
Loan-loss provisions were a negative $22 million, compared with loan-loss of $10.9 million a year earlier. Zions reported loan-loss provisions in the first quarter were a negative $29 million.
“The negative provision continues to be driven by the improvement in credit quality,” the $454.9 billion-asset company said in its earnings report.
Noninterest income fell 3 percent from a year earlier to $125.1 million. Noninterest expenses rose 13 percent from a year earlier to $451.7 million, mainly because of debt-extinguishment cost.
Total loans increased 3.3 percent to $38.2 billion amid growth in commercial, real estate and consumer loans.
The company released earning after stock markets closed Monday. Zions shares gained 29 cents, or 0.95 percent, to close at $30.84 on the Nasdaq. In after-hours trading, Zions shares slid 6 cents, or 0.2 percent, to $30.78.
Zions does not break out quarterly earnings for each subsidiary. Its Nevada State Bank subsidiary, based in Las Vegas, has more than $4 billion in assets and operates 50 branches statewide.
Contact reporter Chris Sieroty at
csieroty@reviewjournal.com or 702-477-3893.
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