Zions Bancorporation Reports Strong Q3 Earnings

SALT LAKE CITY – Zions Bancorporation, N.A. (NASDAQ:ZION) reported third quarter earnings that surpassed analyst expectations, sending shares up 2.75% in after-hours trading.

The bank posted net earnings applicable to common shareholders of $204 million, or $1.37 per diluted share, for the third quarter of 2024. This exceeded the analyst estimate of $1.18 per share by $0.19. The results also marked a 21% increase from earnings of $1.13 per share in the same quarter last year.

Revenue figures were not provided in the earnings release. However, the bank noted that its net interest margin strengthened to 3.03% from 2.93% a year ago, indicating improved profitability on its lending activities.

> "We're pleased with the continued improvement in our financial performance," said Harris H. Simmons, Chairman and CEO of Zions Bancorporation. He highlighted that operating costs increased a modest 1% compared to the prior year.

The bank reported that average noninterest-bearing demand deposits decreased 1.7% compared to the previous quarter, but were flat compared to the end of last quarter. This suggests stabilization in this important source of low-cost funding for the bank.

While classified loans increased 66% quarter-over-quarter, primarily due to weaker performance in multi-family residential loans, management expects credit losses to remain well controlled. Total credit losses for the quarter remained very low at an annualized rate of 0.02% of loans.

Zions also announced an agreement to purchase four branches in California's Coachella Valley from FirstBank, which will add approximately $730 million in deposits and $420 million in loans upon regulatory approval.

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