Facebook Twitter

ZIONS BANCORP. REPORTS GAINS
$5.38 MILLION 3RD-QUARTER INCOME BEATS LAST YEAR’S LOSS

SHARE ZIONS BANCORP. REPORTS GAINS
$5.38 MILLION 3RD-QUARTER INCOME BEATS LAST YEAR’S LOSS

Zions Bancorp. reported improved third quarter earnings as the bank holding company decreased the non-accrual loans and non-performing assets on its books, while increasing loan loss reserves.

Third quarter net income was $5.38 million, 91 cents a share, compared with a net loss of more than $8 million, $1.43 a share, for the same period last year.For the nine months ending Sept. 29, Zions had earnings of $11.41 million, $1.93 a share, compared with a net loss of $5.59 million, 95 cents a share.

Profits for the nine months and the third quarter included "extraordinary tax benefits from net operating loss carry forwards of $2 million, 34 cents per share, and $1.17 million, 20 cents per share."

Also during the third period, the company's principal subsidiary, Zions First National Bank, sold off $47.1 million in installment loans.

Non-accrual loans stood at $45.48 million on Sept. 29, compared with $56.01 million on June 30. Non-performing assets totaled $78.93 million, or 4.59 percent of assets, on Sept. 29, compared with the June 30 total of $88.81 million, or 5.08 percent.

Zions increased its reserves for loan losses to $62.05 million, or 3.67 percent of net loans and leases at the end of the third quarter, compared with $54.55 million, or 3.32 percent, on Dec. 31, 1988.

Net interest during the first nine months was at 4.89 percent, compared with 4.56 percent at the end of 1988.

Zions chairman and chief executive officer said, "The company's Utah and Nevada operations continued a favorable earnings trend during the third quarter. The company's operations in Arizona, however, continue to be impacted by the decline in Arizona's economy and attendant decline in real estate values."