Q4 2024 Zions Bancorporation NA Earnings Call Transcript
Key Points
- Zions Bancorp NA (ZION) reported a 19% increase in fourth quarter adjusted pre-provision net revenue compared to the prior year.
- The net interest margin expanded for the fourth consecutive quarter, reaching 3.05%, up from 2.91% a year ago.
- Customer deposits increased on both an ending and average basis in the fourth quarter and the full year, with stability in noninterest-bearing deposits.
- The capital markets business experienced strong results, contributing to a 15% increase in customer-related noninterest income compared to the previous year.
- Zions Bancorp NA (ZION) redeemed $374 million of preferred stock with high coupons, replacing it with lower-cost subordinated notes, positively impacting earnings per share.
- Net loan losses were higher in the quarter at $36 million, with two-thirds attributable to a single commercial and industrial credit.
- Classified loan balances increased by $777 million, primarily in commercial real estate, indicating potential credit quality concerns.
- The provision for credit losses of $41 million negatively impacted earnings per share by $0.21.
- The allowance for credit losses remained stable, but the increase in classified loans suggests potential future challenges.
- Zions Bancorp NA (ZION) anticipates slightly to moderately increasing noninterest expenses in 2025, including costs related to branch acquisitions and marketing.
Greetings, and welcome to the Zions Bancorp Q4 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. I would like to introduce your host, Shannon Drage. Thank you.
You may begin.
Thank you, Matt, and good evening. We welcome you to this conference call to discuss our 2024 fourth quarter and full year earnings. My name is Shannon Drage, Senior Director of Investor Relations.
I would like to remind you that during this call, we will be making forward-looking statements, although actual results may differ materially. We encourage you to review the disclaimer in the press release or slide 2 of the presentation, dealing with forward-looking information and the presentation of non-GAAP measures, which applies equally to statements made during this call. A copy of the earnings release, as well as the presentation are available at zionsbancorporation.com.
For our agenda today, Chief Executive Officer, Harris Simmons, will
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