Zions Bancorp Q2 Results Miss Estimates

(RTTNews) - Multi-bank holding company Zions Bancorp. (ZION) reported Monday a profit for the second quarter that edged up from last year, reflecting higher revenues. However, net interest margins continued to be pressurized. Adjusted earnings per share and quarterly revenues missed analysts' expectations.

"We are pleased with the continued growth in loans this quarter, and with the progress that we made toward replacing expensive capital and financing issued during the recent crisis with significantly lower cost instruments. We look forward to continued progress on both fronts in the third quarter," Chairman and CEO Harris Simmons said in a statement.

The Salt Lake City, Utah-based company reported net earnings of $55.39 million for the second quarter, edging up from $55.22 million in the prior-year quarter, while earnings per share remained flat with last year at $0.30.

Results for the latest quarter include after-tax debt extinguishment cost of $24.9 million or $0.14 per share, which resulted from the redemption of trust preferred securities and a successful tender offer for approximately $258 million of expensive senior debt.

Excluding items, adjusted net earnings per would have been $57.78 million, compared to $57.92 million in the year-ago quarter.

On average, 26 analysts polled by Thomson Reuters expected the company to report earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter edged up to $555.81 billion from $555.01 million in the year-ago quarter, and topped twenty Wall Street analysts' consensus estimate of $552.38 million by a whisker.

Net interest income for the quarter decreased to $430.66 million from $426.34 million last year, and total non-interest income dropped to $125.15 million from $128.67 million a year ago.

Net interest income was favorably impacted by about $9.4 million due to better than expected performance of FDIC-supported loans.

The provision for loan losses was a negative of $21.99 million, compared to credit of $10.85 million last year.

Net interest margin for the quarter declined to 3.44 percent from 3.56 percent in the prior-year quarter. Total non-interest expense for the quarter increased to $451.68 million from $401.66 million a year ago.

ZION closed Monday's regular trading session at $30.84, up $0.29 or 0.95% on a volume of 2.22 million shares.