Zions Bancorporation, National Association Reports Second Quarter Financial Results

Rhea-AI Summary

Zions Bancorporation (NASDAQ: ZION) reported net earnings of $190 million, or $1.28 per diluted common share, for Q2 2024. This marks an increase from $166 million ($1.11 per share) in Q2 2023 and $143 million ($0.96 per share) in Q1 2024. The bank highlighted improvements in net interest margin, expense management, and credit quality. Notably, tangible book value per share increased by 20% year-over-year.

Post-quarter, Zions completed a significant core processing system upgrade, implementing TCS's BaNCS™ platform across several of its banks. This marks the completion of their FutureCore project, positioning Zions at the forefront of real-time transaction processing and customer experience in the banking industry.

Positive

• Net earnings increased to $190 million in Q2 2024, up from $166 million in Q2 2023
• Earnings per diluted common share rose to $1.28, compared to $1.11 in Q2 2023
• Tangible book value per share increased by 20% year-over-year
• Successful implementation of new core processing system across multiple banks

Negative

• None.

Insights

Financial Analyst

Zions Bancorporation's second quarter financial results show a robust improvement. The net earnings for common shareholders increased to $190 million, or $1.28 per diluted share, a significant rise from both the previous quarter and the same period last year. This denotes a trend of solid financial health and effective management strategies. The 20% increase in tangible book value per share over the year exemplifies strength in capital management and shareholder value appreciation.

A key driver of this performance is the improvement in net interest margin. This indicates that the bank is benefiting from a favorable interest rate environment, allowing it to earn more from its lending activities relative to its cost of funding. Another highlight is the effective expense management. Keeping costs under control while increasing earnings demonstrates efficiency and prudent operational practices.

From an investor's perspective, this upward trend in earnings and shareholder value is positive. It suggests a well-managed bank that can navigate economic fluctuations and interest rate changes adeptly. However, investors should also monitor future quarters to ensure this growth trajectory is sustained.

Tech Expert

The successful completion of the FutureCore project, particularly the transition to the TCS BaNCS™ platform, is monumental for Zions Bancorporation. This core processing system enhancement allows for real-time transaction posting and promises improved customer experiences. This technological upgrade positions Zions at the forefront of banking tech innovations.

The completion of this project should also bring long-term operational benefits. Real-time processing can reduce errors, enhance transaction speeds and improve overall service quality. This modernization effort should not only attract new customers but also help retain existing ones by providing a superior banking experience.

For investors, this successful tech upgrade signals that Zions is committed to leveraging technology for operational excellence. It reduces the risk of legacy system failures and positions the bank to better compete in a digital-first environment.

SALT LAKE CITY, July 22, 2024 /PRNewswire/ -- Zions Bancorporation, N.A. (NASDAQ: ZION) ("Zions" or "the Bank") today reported net earnings applicable to common shareholders for the second quarter of 2024 of $190 million, or $1.28 per diluted common share, compared with net earnings applicable to common shareholders of $166 million, or $1.11 per diluted common share, for the second quarter of 2023, and net earnings applicable to common shareholders of $143 million, or $0.96 per diluted common share, for the first quarter of 2024.

Harris H. Simmons, Chairman and CEO of Zions Bancorporation, commented, "Second quarter results demonstrated continued improvement in our net interest margin, effective expense management, strong credit quality as reflected in continued low loan losses, and strengthened capital. Notably, tangible book value per share has increased by 20% over the year-ago period."

Mr. Simmons continued, "Subsequent to quarter end, we successfully converted our deposit accounts at Zions Bank, California Bank & Trust, and Vectra Bank Colorado to our new core processing system, TCS's BaNCS™ platform, marking the substantive completion of our multi-year FutureCore project. The conclusion of this large-scale modernization project positions Zions Bancorporation at the forefront of the industry in our ability to post transactions in real time and to deliver exceptional experiences to our customers."

For the full version of the Bank's 2024 second quarter earnings release, including financial schedules, please visit www.zionsbancorporation.com.

Supplemental Presentation and Conference Call

Zions has posted a supplemental presentation to its website, which will be used to discuss the second quarter results at 5:30 p.m. ET on July 22, 2024. Media representatives, analysts, investors, and the public are invited to join this discussion by calling (877) 709-8150 (domestic and international) and using the meeting number 13747611, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation website at www.zionsbancorporation.com. The webcast of the conference call will also be archived and available for 30 days.

About Zions Bancorporation, N.A.

Zions Bancorporation, N.A. is one of the nation's premier financial services companies with approximately $87 billion of total assets at December 31, 2023, and annual net revenue of $3.1 billion in 2023. Zions operates under local management teams and distinct brands in 11 western states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The Bank is a consistent recipient of national and state-wide customer survey awards in small- and middle-market banking, as well as a leader in public finance advisory services and Small Business Administration lending. In addition, Zions is included in the S&P MidCap 400 and NASDAQ Financial 100 indices. Investor information and links to local banking brands can be accessed at www.zionsbancorporation.com.

Forward-Looking Information

This earnings release includes "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and assumptions regarding future events or determinations, all of which are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results, performance or achievements, industry trends, and results or regulatory outcomes to differ materially from those expressed or implied. Forward-looking statements include, among others:

• Statements with respect to the beliefs, plans, objectives, goals, targets, commitments, designs, guidelines, expectations, anticipations, and future financial condition, results of operations and performance of Zions Bancorporation, National Association and its subsidiaries (collectively "Zions Bancorporation, N.A.," "the Bank," "we," "our," "us"); and
• Statements preceded or followed by, or that include the words "may," "might," "can," "continue," "could," "should," "would," "believe," "anticipate," "estimate," "forecasts," "expect," "intend," "target," "commit," "design," "plan," "projects," "will," and the negative thereof and similar words and expressions.

Forward-looking statements are not guarantees, nor should they be relied upon as representing management's views as of any subsequent date. Actual results and outcomes may differ materially from those presented. Although the following list is not comprehensive, important factors that may cause material differences include:

• The quality and composition of our loan and securities portfolios and the quality and composition of our deposits;
• Changes in general industry, political, and economic conditions, including elevated inflation, economic slowdown or recession, or other economic challenges; changes in interest and reference rates, which could adversely affect our revenue and expenses, the value of assets and liabilities, and the availability and cost of capital and liquidity; deterioration in economic conditions that may result in increased loan and leases losses;
• The effects of newly enacted and proposed regulations affecting us and the banking industry, as well as changes and uncertainties in applicable laws, and fiscal, monetary, regulatory, trade, and tax policies, and actions taken by governments, agencies, central banks, and similar organizations, including those that result in decreases in revenue; increases in bank fees, insurance assessments and capital standards; and other regulatory requirements;
• Competitive pressures and other factors that may affect aspects of our business, such as pricing and demand for our products and services, and our ability to recruit and retain talent;
• The impact of technological advancements, digital commerce, artificial intelligence, and other innovations affecting the banking industry;
• Our ability to complete projects and initiatives and execute on our strategic plans, manage our risks, control compensation and other expenses, and achieve our business objectives;
• Our ability to develop and maintain technology, information security systems, and controls designed to guard against fraud, cybersecurity, and privacy risks;
• Our ability to provide adequate oversight of our suppliers or prevent inadequate performance by third parties upon whom we rely for the delivery of various products and services;
• Natural disasters, pandemics, catastrophic events and other emergencies and incidents and their impact on our and our customers' operations and business and communities, including the increasing difficulty in, and the expense of, obtaining property, auto, business, and other insurance products;
• Governmental and social responses to environmental, social, and governance issues, including those with respect to climate change;
• Securities and capital markets behavior, including volatility and changes in market liquidity and our ability to raise capital;
• The possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and shareholders' equity;
• The impact of bank closures or adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks;
• Adverse news and other expressions of negative public opinion whether directed at us, other banks, the banking industry, or otherwise that may adversely affect our reputation and that of the banking industry generally;
• Protracted congressional negotiations and political stalemates regarding government funding and other issues, including those that increase the possibility of government shutdowns, downgrades in United States ("U.S.") credit ratings, or other economic disruptions; and
• The effects of wars and geopolitical conflicts, such as the ongoing war between Russia and Ukraine, the war in the Middle East, and other local, national, or international disasters, crises, or conflicts that may occur in the future.

Factors that could cause our actual results, performance or achievements, industry trends, and results or regulatory outcomes to differ materially from those expressed or implied in the forward-looking statements are discussed in our 2023 Form 10-K and subsequent filings with the Securities and Exchange Commission (SEC), and are available on our website (www.zionsbancorporation.com) and from the SEC (www.sec.gov).

We caution against the undue reliance on forward-looking statements, which reflect our views only as of the date they are made. Except to the extent required by law, we specifically disclaim any obligation to update any factors or to publicly announce the revisions to any forward-looking statements to reflect future events or developments.

 

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SOURCE Zions Bancorporation

FAQ

What were Zions Bancorporation's (ZION) Q2 2024 earnings?

Zions Bancorporation reported net earnings of $190 million, or $1.28 per diluted common share, for Q2 2024.

How did Zions Bancorporation's (ZION) Q2 2024 earnings compare to previous quarters?

Q2 2024 earnings of $190 million ($1.28 per share) increased from $166 million ($1.11 per share) in Q2 2023 and $143 million ($0.96 per share) in Q1 2024.

What significant project did Zions Bancorporation (ZION) complete in 2024?

Zions completed its FutureCore project, implementing TCS's BaNCS™ platform as its new core processing system across several of its banks.

How much did Zions Bancorporation's (ZION) tangible book value per share increase in Q2 2024?

Zions reported that its tangible book value per share increased by 20% over the year-ago period.