By Josh Beckerman And Julie Steinberg
Zions Bancorp said its earnings edged down in the most recent
quarter as a key measure of lending profitability declined, though
net interest income rose slightly.
Earnings came in above Wall Street estimates.
Zions said results "were generally in line with our
expectations," and said the bank strengthened its reserves "in
light of continuing stress in the energy sector."
The company said "loan growth was subdued during the quarter;
however, we continue to exercise caution with regard to
underwriting standards and remain disciplined with respect to
pricing."
The bank posted earnings of $75.3 million, down from $76.2
million in the prior-year period. On a per-share basis, earnings
fell to 37 cents from 41 cents.
Analysts had expected 36 cents a share, according to Thomson
Reuters.
Net interest income at the Salt Lake City-based bank rose to
$417.3 million from $416.5 million.
Zions in recent years has cleaned up its balance sheet, shedding
risky collateralized debt obligations that featured prominently in
the 2008 financial crisis.
In the most recent quarter, it reclassified all of its remaining
held-to-maturity CDO securities, or about $79 million at amortized
cost, to available-for-sale securities. The Wall Street Journal
reported last month that the bank was considering selling off its
entire portfolio.
Net interest margin, an important measure of lending
profitability, fell to 3.22% from 3.31% a year earlier.
Write to Josh Beckerman at josh.beckerman@wsj.com and Julie
Steinberg at julie.steinberg@wsj.com
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