Zions Bancorp Slips To Q4 Loss

(RTTNews) - Multi-bank holding company Zions Bancorp. (ZION) reported Monday a loss for the fourth quarter compared to a loss last year, hurt by impairment charges and debt extinguishment costs as well as lower revenues amid continued net interest margin pressure. The company also announced a quarterly dividend.

"We are pleased with the improvement in loan growth, further strengthening of credit quality, and stabilization of the net interest margin during the quarter. Additionally, the steps we are taking to reduce risk in our securities portfolio, combined with continued strengthening of our capital ratios, positions us well to serve our customers and grow as the economy continues to improve," Chairman and CEO Harris Simmons said in a statement.

The Salt Lake City, Utah-based company reported a net loss of $59.44 million or $0.32 per share for the fourth quarter, compared to net earnings of $35.61 million or $0.19 per share in the prior-year quarter.

Results for the latest quarter include impairment charges on collateralized debt obligation securities amid the company's decision to reduce risk within its CDO portfolio, and the impact of the final provisions of the Volcker Rule totaling $0.74 per share.

Excluding items, adjusted net loss for the quarter was $57.39 million, compared to earnings of $38.87 million in the year-ago quarter.

On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.43 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter declined to $400.89 million from $484.12 million in the year-ago quarter, and missed seventeen Wall Street analysts' consensus estimate of $545.00 million.

Net interest income for the quarter increased to $432.04 million from $429.96 million last year, and total non-interest loss was $31.15 million, compared to income of $54.16 million a year ago.

The provision for loan losses was a credit of $30.54 million, compared to credit of $10.40 million last year.

Total non-interest expense for the quarter increased to $494.75 million from $407.01 million a year ago. Net interest margin for the quarter declined to 3.33 percent from 3.47 percent in the prior-year quarter.

Additionally, the company's board of directors declared a regular quarterly dividend of $0.04 per common share, payable on February 27 to shareholders of record on February 20, 2014.

For fiscal 2013, the company reported net earnings of $293.98 million or $1.58 per share, higher than $178.63 million or $0.97 per share in the prior year. Net interest income for the year decreased to $1.70 billion from $1.73 million last year, and total non-interest loss was $337.41 million, down from $419.87 million a year ago.

Street was looking for full-year 2013 earnings of $2.31 per share on annual revenues of $2.20 billion.

ZION closed Monday's regular trading session at $29.93, down $0.30 or 0.99% on a volume of 3.13 million shares. The stock lost a further $1.43 or 4.78% in after-hours trading.