Zions Returns to the Black for First Time in Two Years

Zions Bancorp. reported its first quarterly profit since the financial crisis, driven by dramatically reduced reserving and chargeoffs.

The Salt Lake City bank posted net earnings of $15 million for the first quarter, compared to an $86 million loss a year earlier. Credit improvements drove the gains, with chargeoffs declining 44% from the 4th quarter, to $141 million. Loan-loss provisions fell 65% to $60 million over the same period.

"We believe these improved credit measures and trends are sustainable, and will lead to continued operating profitability through the remainder of the year," said Harris Simmons, Zions' chairman and chief executive officer, in a press release Monday.

The bank's net interest margin also increased, from 3.49% in the fourth quarter to 3.76% in the first. The company's Tier One capital ratio also rose to 9.3%, from 7.1% a year earlier. Zions also reported a $19 million gain on loans acquired with an FDIC loss-guarantee backstop.

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