Zions Bancorp NA (ZION) Reports 3Q23 Earnings: Net Earnings of $168 Million, Diluted EPS of $1.13
Zions Bancorp NA (NASDAQ:ZION) reports 3Q23 net earnings of $168 million, down from $211 million in 3Q22.
Diluted EPS stands at $1.13, compared to $1.40 in the same period last year.
Net interest margin (NIM) was 2.93%, slightly up from 2.92% in the second quarter of 2023.
Loans and leases increased by 6% to $56.9 billion.
On October 18, 2023, Zions Bancorp NA (NASDAQ:ZION) released its third-quarter earnings report for 2023. The company reported net earnings of $168 million, a decrease from $211 million in the same period last year. The diluted earnings per share (EPS) was $1.13, compared to $1.40 in 3Q22. Despite a challenging environment, the company's net interest margin (NIM) showed signs of stabilization, standing at 2.93%, slightly up from 2.92% in the second quarter of 2023.
Financial Performance Highlights
Zions Bancorp NA (NASDAQ:ZION) reported that net interest income was $585 million, down 12% from the previous year. The company's pre-provision net revenue (PPNR) was $280 million, down 22%, while adjusted PPNR was $272 million, down 23%. Noninterest expense was $496 million, up 4%, and adjusted noninterest expense was $493 million, up 3%.
The company's loans and leases increased by 6% to $56.9 billion. The provision for credit losses was $41 million, compared with $71 million in the same period last year. The allowance for credit losses was 1.30%, compared with 1.09% of loans and leases.
CEO Commentary
Harris H. Simmons, Chairman and CEO of Zions Bancorp NA (NASDAQ:ZION), commented, "Our third quarter results reflect a stabilization of the net interest margin in the wake of the industry-wide turbulence earlier in the year. While loan demand weakened in the third quarter, we were pleased with the growth in customer deposits, which increased 5% over the past three months, while higher-cost brokered deposits and short-term borrowed funds decreased 23% and 21%, respectively."
Balance Sheet Analysis
Total deposits were $75.4 billion, down 1% from the prior year quarter. Customer deposits (excluding brokered deposits) were $68.8 billion, up 5% from the second quarter of 2023. Short-term borrowings, consisting primarily of secured borrowings, were $4.3 billion, compared with $5.4 billion. The estimated CET1 capital ratio was 10.2%, compared with 9.6%.
The company's total noninterest expense increased by 4% relative to the prior year quarter, primarily due to increases in technology, telecom, and information processing expense. The efficiency ratio was 64.4%, compared with 57.6%, primarily due to a decline in adjusted taxable-equivalent revenue.
For more detailed information, investors are encouraged to visit the Zions Bancorp NA (NASDAQ:ZION) website to access the full earnings report and supplemental presentation.
This article first appeared on GuruFocus.
