Zions Bancorporation Earnings Cheat Sheet: Swing Up, Topping Expectations

S&P 500 (NYSE:SPY) component Zions Bancorporation (NASDAQ:ZION) reported its results for the third quarter. Zions Bancorporation provides a full range of banking and related services through its banking and other subsidiaries.

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Zions Earnings Cheat Sheet for the Third Quarter

Results: Reported a profit of $109.1 million (35 cents per diluted share) in the quarter. The bank had a net loss of $47.3 million or a loss of 47 cents per share in the year earlier quarter.

Revenue: Noninterest income was $121 million last quarter.

Actual vs. Wall St. Expectations: ZION reported adjusted net income of 40 cents per share. By that measure, the company beat the mean estimate of 32 cents per share.

Quoting Management: “We are pleased with the continued steady improvement in credit quality and the stability of our net interest income,” said Harris H. Simmons, chairman and chief executive officer. Mr. Simmons continued, “While loan demand softened somewhat for us compared to the prior quarter, we continued to experience growth in several categories as payoffs and paydowns in the construction portfolio resulted in a modest decline in the overall portfolio.” Mr. Simmons concluded, “We expect continued improvement in credit quality in the near term despite the uncertain economic environment. We have observed continued competitive pricing pressures particularly with respect to larger commercial credits. While the recent flattening of the yield curve may have a modest adverse impact on our net interest income, we are considerably more sensitive to changes in short-term rates than to long-term rates.”

Key Stats:

The company has now topped analyst estimates for the last three quarters. It beat the mark by 17 cents in the second quarter and by 25 cents in the first quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 28 cents a share to 31 cents over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from 78 cents per to share to 87 cents.

Competitors to Watch: Glacier Bancorp, Inc. (NASDAQ:GBCI), CoBiz Financial Inc (NASDAQ:COBZ), Wells Fargo & Company (NYSE:WFC), Community Bancorp (CBONQ), Bank of America Corp. (NYSE:BAC), First State Bancorp., NM (FSNM), U.S. Bancorp (NYSE:USB), TCF Financial Corporation (NYSE:TCB), Western Alliance Bancorporation (NYSE:WAL), and JPMorgan Chase & Co. (NYSE:JPM).

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(Source: Xignite Financials)