Published on 23 Apr 2024 on Zacks via Yahoo Finance

Zions (ZION) Stock Up 3.5% on Q1 Earnings Beat, Provisions Dip

Shares of Zions Bancorporation ZION gained 3.5% in response to better-than-expected first-quarter 2024 results. Adjusted net earnings per share of $1.03 surpassed the Zacks Consensus Estimate of $1.00. However, the bottom line decreased 26% from the year-ago quarter.Results were primarily aided by lower provisions and stable adjusted expenses. However, a decline in net interest income (NII) and non-interest income, and a fall in loan balance were major headwinds.Results in the reported quarter excluded the FDIC special assessment charge. After considering it, net income attributable to common shareholders was $143 million, plunging 28% year over year. We had projected the metric to be $134.3 million.

Revenues Decline, Expenses Stable

Net revenues (tax equivalent) were $752 million, down 11% year over year. The top line, however, beat the Zacks Consensus Estimate of $747.2 million.NII was $583 million, declining 14%. The fall was mainly due to higher funding costs. Likewise, net interest margin (NIM) shrunk 39 basis points (bps) to 2.94%. Our estimates for NII and NIM were $581.7 million and 2.91%, respectively.Non-interest income came in at $156 million, decreasing 3%. We had projected non-interest income to be $152.5 million.Adjusted non-interest expenses were relatively stable at $511 million. Our estimate for the metric was the same as the reported number.Adjusted efficiency ratio was 67.9%, up from 59.9% in the prior-year period. A rise in the efficiency ratio indicates a decrease in profitability.As of Mar 31, 2024, net loans and leases held for investment were $57.4 billion, rising 1% from the prior quarter. Total deposits were $74.2 billion, down 1%.