ZION - Zions Bancorporation stock spikes as deposits rebound in Q2

2023-07-19 17:19:46 ET

Zions Bancorporation ( NASDAQ: ZION ) stock jumped 9.1% in Wednesday after-hours trading after the regional lender posted Q2 earnings that topped Wall Street expectations and reflected a solid rebound in customer deposits.

"While noninterest-bearing deposits decreased $2.3 billion during the quarter and were displaced by interest-bearing deposits, the interest savings generated from our demand deposits increased by approximately 28% over the past three months," said Chairman and CEO Harris H. Simmons.

Q2 EPS of $1.11 , slightly exceeding the $1.09 average analyst estimate, slid from $1.33 in Q1 and from $1.84 in the year-ago quarter.

Total deposits of $74.3B rose 7% Q/Q; customer deposits were $65.9B, up 3% from prior quarter. Total loans and leases of $56.9B edged up from $56.3B in Q1.

Net interest income came in at $591M compared with $679M in Q1 and $593M in Q2 2022. The Q/Q drop was mainly due to a higher cost of funds. Net interest margin of 2.92% vs. 3.33% in Q1 and 2.87% in Q2 2022.

Conference call at 5:30 p.m. ET.

More on Zions Bancorporation:

• SA Quant system rates ZION a Sell
• Zions Bancorporation: Focus On The Valuation, Not The News
• Zions Bancorporation downgraded to Neutral at Janney on reduced NIM guidance

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