Zions Bancorp (ZION) Misses Q3 EPS by 4c

Zions Bancorp (NASDAQ: ZION) reported Q3 EPS of $0.40, $0.04 worse than the analyst estimate of $0.44.

During the third quarter of 2014, the Company undertook considerable actions to reduce risk and enhance capital levels, both on an as-reported basis and under hypothetical stress test scenarios. Actions included:

• Issuance of $525 million of common stock
• Reduction of $835 million par amount of long-term debt through tender offers, early calls, and maturities
• Reduction of $447 million in construction and land development loans through conversions to term, syndications, and increased participations
• Sales of $174 million and paydowns of $32 million of collateralized debt obligations ("CDOs")

Third Quarter 2014 Highlights

• Credit quality continued to improve as nonperforming lending-related assets declined 12% linked quarter and classified loans declined 7% linked quarter. These and other improvements in credit quality metrics contributed to negative provisions of $55 million for loans and $16 million for unfunded lending commitments.
• Net interest income of $417 million this quarter was essentially unchanged from the prior quarter.
• The estimated Tier 1 common equity ratio increased to 11.88% at September 30, 2014 from 10.45% at June 30, 2014, resulting primarily from the capital and risk management actions previously discussed.

For earnings history and earnings-related data on Zions Bancorp (ZION) click here.

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