S&P 500 (NYSE:SPY) component Zions Bancorporation (NASDAQ:ZION) climbed to a profit in the second quarter and beat Wall Street’s expectations in the process. Zions Bancorporation provides a full range of banking and related services through its banking and other subsidiaries.
Zions Earnings Cheat Sheet for the Second Quarter
Results: Swung to a profit of $72.9 million (16 cents per diluted share) in the quarter. The bank had a net loss of $113 million or a loss of 84 cents per share in the year earlier quarter.
Revenue: Noninterest income was $128.3 million last quarter.
Actual vs. Wall St. Expectations: ZION beat the mean analyst estimate of a loss of one cent per share.
Quoting Management: “We are pleased with the progress made in the second quarter. We saw continued broad-based improvement in credit quality metrics, and we saw modest growth in our loan portfolio, with commercial and consumer loan growth more than offsetting a modest decline in commercial real estate loans,” said Harris H. Simmons, chairman and chief executive officer. Mr. Simmons continued, “We experienced continued strengthening of our funding mix, with average checking deposits increasing nearly $500 million during the quarter.” Mr. Simmons concluded, “We are sanguine about our opportunities – we expect profitability to continue to strengthen and note that our relatively strong capital and funding ratios position us to take advantage of lending opportunities as they arise.”
The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 8 cents versus a mean estimate of a loss of 17 cents per share.
Competitors to Watch: Glacier Bancorp, Inc. (NASDAQ:GBCI), CoBiz Financial Inc (NASDAQ:COBZ), First State Bancorp., NM (FSNM), TCF Financial Corporation (NYSE:TCB), Western Alliance Bancorporation (NYSE:WAL), Citigroup Inc. (NYSE:C), Bank of America (NYSE:BAC), Deutsche Bank (NYSE:DB), JPMorgan Chase (NYSE:JPM), HSBC (NYSE:HBC), The Bank of New York Mellon Corporation (NYSE:BK), Northern Trust Corporation (NASDAQ:NTRS), PNC (NYSE:PNC), Zions Bancorp (NASDAQ:ZION), Financials (NYSE:XLF) and Wells Fargo & Company (NYSE:WFC).
(Source: Xignite Financials)