Overview
- Net income rose to $221 million, or $1.48 per share, as net interest income increased to $672 million from $620 million a year earlier.
- Zions recorded nearly $50 million in charge-offs tied to two California commercial loans and set an approximately $60 million provision, reserving against the remaining exposure.
- The bank filed suit to recover funds, initiated an independent review of credit and collateral practices, and said it has no other exposure to the borrowers, whose lawyer denies wrongdoing.
- Shares plunged more than 11% following last week’s disclosure before stabilizing, and they gained about 2% after the earnings release as broader bank stocks recovered from the prior sell-off.
- Management characterized the losses as isolated, noted improved credit metrics excluding the event, detailed about $2 billion in NDFI exposure (roughly 3% of loans), and nudged loan growth guidance to slightly to moderately increasing.