Zions Bancorporation, National Association Reports Third Quarter Financial Results
Zions Bancorporation reported third-quarter net earnings of $167 million, or $1.01 per diluted share, down from $214 million or $1.17 per share in Q3 2019. Compared to Q2 2020, earnings increased from $57 million. The bank experienced weak loan demand due to the pandemic but noted record production in residential mortgages. Loan modifications affected 9% of borrowers, with 88% completing deferrals. Charge-offs were low at 0.38%. The bank aims to manage margin compression through disciplined expense control, maintaining healthy adjusted pre-provision net revenue.
- Q3 2020 net earnings increased to $167 million from $57 million in Q2 2020.
- Record production and income from residential mortgages during the pandemic.
- Only 1.0% of loan modifications were delinquent after deferral periods.
- Net earnings decreased from $214 million in Q3 2019.
- Weak overall loan demand, impacting growth.
SALT LAKE CITY--(BUSINESS WIRE)--Zions Bancorporation, N.A. (NASDAQ: ZION) ("Zions" or "the Bank") today reported net earnings applicable to common shareholders for the third quarter of 2020 of
Harris H. Simmons, Chairman and CEO of Zions Bancorporation, commented, “Despite the headwinds of a challenging interest rate and credit environment, we are pleased with many aspects of the Bank’s third quarter performance. We’re particularly pleased by the resilience demonstrated by our customers in the face of the coronavirus pandemic. Approximately
Mr. Simmons continued, “The pandemic-induced recession has resulted in weak loan demand at Zions and across the industry, with the exception of residential mortgages, where we’ve experienced record production and income. At the same time, economic stimulus programs have produced substantial deposit growth, resulting in higher cash holdings and margin compression. We’ve worked at offsetting margin pressure through disciplined expense control, with the result that adjusted pre-provision net revenue has remained healthy.” For the full version of the Bank's 2020 third quarter earnings release, including financial tables, please visit zionsbancorporation.com.
Supplemental Presentation and Conference Call
Zions has posted a supplemental presentation to its website, which will be used to discuss these third quarter results at 5:30 p.m. ET this afternoon (October 19, 2020). Media representatives, analysts, investors and the public are invited to join this discussion by calling (253) 237-1247 (domestic and international) and entering the passcode 9257335, or via on-demand webcast. A link to the webcast will be available on the Zions Bancorporation website at 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 annual net revenue of
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, market trends, industry results or regulatory outcomes to differ materially from those expressed or implied by such forward-looking statements.
Without limiting the foregoing, the words “forecasts,” “targets,” “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “would,” “will” and the negative thereof and similar words and expressions are intended to identify forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about future financial and operating results. Actual results and outcomes may differ materially from those presented, either expressed or implied, in the release. Important risk factors that may cause such material differences include, but are not limited to, the effects of the spread of the virus commonly referred to as the coronavirus or COVID-19 (and other potentially similar pandemic situations) and associated impacts on general economic conditions on, among other things, our customers’ ability to make timely payments on obligations, fee income revenue due to reduced loan origination activity and card swipe income, operating expense due to alternative approaches to doing business, and so forth; the Bank’s ability to meet operating leverage goals; the rate of change of interest-sensitive assets and liabilities relative to changes in benchmark interest rates; the ability of the Bank to upgrade its core deposit system and implement new digital products in order to remain competitive; risks associated with information security, such as systems breaches and failures; and legislative, regulatory and economic developments. These risks, as well as other factors, are discussed in the Bank’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission (SEC) and available at the SEC’s Internet site (https://www.sec.gov/). In addition, you may obtain documents filed with the SEC by the Bank free of charge by contacting: Investor Relations, Zions Bancorporation, N.A., One South Main Street, 11th Floor, Salt Lake City, Utah 84133, (801) 844-7637.
We caution you against undue reliance on forward-looking statements, which reflect our views only as of the date they are made. Except as may be required by law, Zions Bancorporation, N.A. specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.
