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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