This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Zions: Bank Stock Winner

In a presentation including in a Securities and Exchange Commission filing on Tuesday, the company said it expected "further improvement in profitability" from its capital actions, and that its net interest margin "remains strong relative to peers." Zions also said it would see "Significant earnings and capital upside" from its asset-sensitive position, "If short-term interest rates rise and/or yield curve steepens further."

Zions reported second-quarter earnings applicable to common shareholders of $55.4 million, or 30 cents a share, declining from $88.3 million, or 48 cents a share, in the first quarter, but rising slightly from $55.2 million, or 30 cents a share, during the second quarter of 2012.

Excluding $24.9 million, or 14 cents a share in costs from the redemption of trust-preferred redemption and retirement of debt, the year-over-year earnings increase mainly reflected the bank's improved credit quality. During the second quarter, Zions transferred $22.0 million from loan loss reserves, compared to a provision for reserves of $10.9 million a year earlier.

Even after that transfer, reserves were very strong, covering 2.13% of total loans. A very low annualized net charge-off ratio of 0.06% during the second quarter, and net charge-offs at annualized levels below 0.50% of total loans over the past year, indicate significant further reserve releases ahead.

Zions reported second-quarter net interest income of $430.7 million, increasing from $418.1 million in the first quarter, and $426.3 million in the second quarter of 2012, reflecting growth of average non-covered portfolio loans of 1% sequentially and 2% year-over-year.

The company still has a way to go to join the ranks of regional banks with strong earnings results, in part because of the costs associated with the continued balance sheet restructuring. The second-quarter return on average assets was 0.61%, and the return on average tangible common equity was 5.73%.

ZION ChartZION data by YCharts

Interested in more on Zions Bancorporation? See TheStreet Ratings' report card for this stock.

RELATED STORIES:






-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.

Stock quotes in this article: ZION, BBY, URBN, JCP 
Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,511.33 +9.68 0.06%
S&P 500 1,878.02 +2.63 0.14%
NASDAQ 4,145.2670 +18.30 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs