A slump in Zions Bancorp.'s noninterest income caused the Salt Lake City company to report lower quarterly earnings.
The $57.6 billion-asset company said Monday that its first-quarter profit fell roughly 1% from a year earlier, to $75.3 million. Earnings per share of 37 cents fell nearly 10%.
Noninterest income fell almost 12%, to $121.8 million, mainly because of a $239,000 loss tied to fixed-income securities. Zions had a roughly $31 million gain from such securities in the first quarter of 2014. Noninterest expenses fell less than 1%, to $397.5 million.
Net interest income was relatively flat, at $417.3 million. Pricing pressure on loans persisted, particularly for larger commercial credits, Zions said. Total loans rose more than 2%, to $40.2 billion, with increased in consumer and commercial lending.
Overall credit quality metrics remained in line with expectations, but "as expected, energy-related nonperforming and classified loans increased and are expected to increase further in a continued low energy price environment," the company said. Zions' energy-related portfolio includes about $3.4 billion in loans and leases and $2.5 billion in unfunded commitments.
