Zions Bancorporation (ZION) - Get Report the Salt Lake City-based bank holding company, reported earnings of 38 cents per share for the first quarter of 2016 on Monday afternoon, a penny short of estimates from a consensus of analysts who cover the company.

The miss represents a drop of around 11% from 43 cents in the fourth quarter of 2015 but an increase of around 3% from from the first quarter of 2015 or 37 cents per share. The bank is currently trading at $27.29, around .89 times tangible book, according to a note by Sandler O'Neill analyst Brad Milsaps. Milsaps said in the note that he expected Zions to report 38 cents per share.

The bank also reported net interest income of $453 million for the first quarter, up 1% for fourth quarter 2015, and up 21% from the first quarter last years. The bank said in its earnings release that the increase in net interest income was primarily driven by a change in the mix of interest-earning assets and that "average money market investments declined by $2.7 billion, much of which was deployed into loans and term investment securities."

Zions chairman and CEO Harris H. Simmons said in the announcement, "We continue to generate strong growth in pre-provision net revenue, reflecting operating leverage improvement resulting from solid loan growth, a more profitable earning assets mix and controlled core operating expenses." He added that "although energy-related credit losses and related provisions largely offset these gains, recent improvements in energy prices are encouraging, and credit performance in the rest of the portfolio has been stellar."

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The bank performed fairly well in the last quart of 2015, having achieved positive operating leverage and met goals to keep adjusted non-interest expense below $1.6 billion for the year. The bank also reported an efficiency ratio of 68.5% during the first quarter this year. In its fourth quarter earnings, the bank stated a goal of achieving an efficiency ratio of less than 66% this year.

In the note, Milsaps said "loan growth improved in 4Q15 marked by 5.6% link-quarter annualized growth in period-end balances" and "absent run-off in energy and national commercial real estate, growth would have been closer to 8%."

Zions reported net charge-offs for oil and gas loans of $36 million in 1Q16 compared to $24 million in 4Q15.

Milsaps maintains a "Buy" rating on Zions.

Utah's fourth largest bank operates 500 branches in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming and has a market cap of $5.6 billion, with nearly $60 billion in assets.