Zions Bancorporation N.a. · NASDAQ:ZION
Zions Bancorporation N.a — Zions Bancorporation — Q2 2015 Earnings Presentation
13 slides from Zions Bancorporation N.a's earnings presentation, Jul 20, 2015
Slide 1: Second Quarter 2015 Financial Review
July 20, 2015 Second Quarter 2015 Financial Review
Slide 2: Forward-Looking Statements & Peer Group Abbreviations
Forward-Looking Statements & Peer Group Abbreviations This presentation contains statements that relate to the projected or modeled performance or condition of Zions Bancorporation and elements of or affecting such performance or condition, including statements with respect to forecasts, opportuniti
Slide 3: Major 2Q15 Announcements: Efficiency Initiative
On June 1, 2015, Zions announced several organizational and operational changes, including: • Consolidate bank charters from seven to one while maintaining local leadership, local product pricing, and local brands • Create a Chief Banking Officer position, with responsibility for retail banking, wea
Slide 4: Major 2Q15 Announcements: Sold the remainder of the CDOs
Major 2Q15 Announcements: Sold the remainder of the CDOs as de-risking efforts continue 4 • As announced in mid-June, Zions sold the remaining balance of its collateralized debt obligation (CDO) portfolio. • Recognized loss of $137 million on $574 million (amortized cost) of such securities. • 2Q15
Slide 5: Credit Quality
Credit Quality 5 -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 2Q14 3Q14 4Q14 1Q15 2Q15 Key Credit Quality Ratios Classifieds / Loans Nonperforming Assets / Loans Net Charge-offs / Loans Net Charge-offs / Loans annualized • Continued strong credit quality performance. Relative to March 31, 2015: • C
Slide 6: Energy-Related Exposure
ENERGY-RELATED EXPOSURE* % of total loans % of total loans % of total loans (In millions) June 30, 2015 March 31, 2015 December 31, 2014 Loans and leases Oil and gas-related $ 2,883 7.2 % $ 3,157 7.9 % $ 3,073 7.7 % Alternative energy 222 232 225 Total loans and leases 3,105 3,389 3,298 Unfunded len
Slide 7: Financial Results
Financial Results 7 Three Months Ended (Dollar amounts in thousands, except per share data) June 30, 2015 March 31, 2015 June 30, 2014 Earnings Results: Diluted Earnings Per Share $ (0.01) $ 0.37 $ 0.56 Adjusted Earnings Per Share* 0.41 NA NA Net Interest Income 423,704 417,346 416,284 Provision for
Slide 8: Net Interest Income: Net Interest Margin Remains Strong
Net Interest Income: Net Interest Margin Remains Strong 8 • Continued deposit growth without commensurate increase in loans resulted in slight NIM pressure • Continued investment in medium- duration government agency mortgage-backed securities & execution of interest rate swaps • Continue to expect
Slide 9: Net Interest Income: Loan pricing discipline supports NIM stability
Net Interest Income: Loan pricing discipline supports NIM stability 9 3.0% 3.5% 4.0% 4.5% 5.0% 2Q14 3Q14 4Q14 1Q15 2Q15 Portfolio Yield vs. Production Yield New Production Coupon Loans HFI Yield Loans HFI Coupon • Stable linked-quarter loan yield • Coupon rate of new loan production (green) increase
Slide 10: Noninterest Income - Informing the Outlook
Noninterest Income - Informing the Outlook: Insight into non run-rate items 10 • Strength across multiple businesses • 2Q15 increase (vs. 1Q15) attributable to: • Loan fees • Business and consumer card activity • Customer interest rate swap activity • Top year-over-year performers: • Treasury manage
Slide 11: Noninterest Expense - Informing the Outlook
Noninterest Expense - Informing the Outlook: Insight into seasonality and other specific items 11 $404.1 $5.9 $2.6 $2.7 $2.4 $1.7 $0.7 $9.2 $2.3 $399.6 $380 $385 $390 $395 $400 $405 Reported NIE Seasonal Share- Based Compensation Incentive Plans Based on Stock Price Indemnification Asset Expense Deb
Slide 12: Efficiency Ratio
Efficiency Ratio 12 73.3% 73.0% 74.1% 72.3% 71.4% 55% 60% 65% 70% 75% 80% 2Q14 3Q14 4Q14 1Q15 2Q15 Noninterest Expenses as a Percentage of Net Revenue1 • The efficiency ratio improved modestly to 71.4%, from 73.3% a year ago. • The Company is reiterating its commitment to holding the efficiency rati
Slide 13: Next 12-Month Outlook Summary
Next 12-Month Outlook Summary Relative to 2Q15 Results Topic Outlook Comment Loan Balances Slightly to Moderately Increasing • Prepayments remain volatile, energy lending softness making net loan growth difficult to forecast Net Interest Income Moderately Increasing • Driven by loan growth, MBS purc