Post Earnings Coverage as Zions' Q4 EPS Surged 40%; Beat Estimates
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Upcoming AWS Coverage on Bank of Hawaii Post-Earnings Results
LONDON, UK / ACCESSWIRE / January 30, 2017 / Active Wall St. announces its post-earnings coverage on Zions Bancorp (NASDAQ: ZION). The Company posted its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on January 23, 2017. The Salt Lake City, Utah-based company's diluted EPS surged 40% y-o-y, outperforming Wall Street's estimates. Register with us now for your free membership at:
One of Zions Bancorp's competitors within the Regional - Pacific Banks space, Bank of Hawaii Corp. (NYSE: BOH), reported its 2016 Financial Results on January 23, 2017. AWS will be initiating a research report on Bank of Hawaii in the coming days.
Today, AWS is promoting its earnings coverage on ZION; touching on BOH. Get our free coverage by signing up to:
During Q4 FY16, Zions' total interest income grew 6% to $501.77 million in Q4 FY16 from $473.56 million in Q4 FY15. The Company's total interest expenses fell to $21.30 million in Q4 FY16 from $24.73 million in Q4 FY15. Zions' net interest income also increased 6.9% during the reported quarter to $480.47 million from $448.83 million in Q4 FY15. Furthermore, total non-interest income increased to $128.24 million in Q4 FY16 from $118.64 million in the year ago same quarter.
The financial holding Company reported net income applicable to common shareholders of $124.99 million, or $0.60 per diluted share, in Q4 FY16 compared to $88.20 million, or $0.43 per diluted share, in Q4 FY15. Wall Street had expected the Company to report adjusted earnings of $0.52 per diluted share.
In FY16, Zions' net interest income increased to $1.87 billion from $1.72 billion in FY15. The Company's total noninterest income also improved during FY16 to $515.61 million from $357.24 million in the previous year. Furthermore, net income available to common equity for the reported quarter came in at $411.31 million, or $1.99 per diluted share, compared to $246.61 million, or $1.20 per diluted share in FY15.
Earnings Metrics
During the reported quarter, the Company's return on average assets improved to 0.89%, from 0.68% in the prior year's comparable quarter. The return on average common equity came in at 7.10% in Q4 FY16, which came in above 5.17% reported in the year ago same period. Moreover, tangible return on average tangible common equity for the reported quarter was 8.40% in Q4 FY16 compared to 6.20% in the prior year's corresponding quarter.
The Company's efficiency ratio was 64.5% in Q4 FY16 compared to 69.6% in Q4 FY15. Net interest margin rose during Q4 FY16 to 3.37% from 3.23% in Q4 FY15. The tangible common equity ratio was 9.49% at December 31, 2016, compared to 9.63% as on December 31, 2015. During Q4 FY16, Basel III common equity tier 1 capital ratio was 12.1%, versus 12.2% in the prior year's comparable quarter. Additionally, Basel III tier 1 leverage ratio stood at 11.1% as on December 31, 2016, compared to 11.3% as on December 31, 2015.
Balance Sheet Analyzed
Zions' average total loans held for investment balance at the end of Q4 FY15 was $42.64 billion compared to $40.35 billion at the end of last year's corresponding quarter. In Q4 FY14, the average yield on total loans held for investment was 4.11% compared to 4.24% in Q4 FY15. Total average interest-earning assets for the quarter ended December 31, 2016 were $57.55 billion versus $55.69 billion recorded in the prior year's same period. In Q4 FY16, spread on average interest-bearing funds during was 3.24% compared to 3.07% in Q4 FY15. Furthermore, average total deposits increased $1.5 billion in Q4 FY16 to $52.2 billion.
The Company had total non-performing assets of $572.91 million at December 31, 2016, compared to $356.95 million as on December 31, 2015. Non-performing assets as a percent of loans and leases and other real estate owned was 1.34% at December 31, 2016, up 47 basis points from 0.87% as on December 31, 2015. However, provision for credit losses decline to $0.609 million from $16.15 million in the year ago same quarter.
Dividend and Share Repurchase
In a separate press release on January 27, 2017, Zions' Board of Directors announced a regular quarterly dividend of $0.08 per common share. The dividend is payable February 23, 2017 to shareholders of record on February 16, 2017.
During FY16, Zions continued its stock buyback program and repurchased $45 million of its stock during the reported quarter at an average price of $31.69 per share. Furthermore, the Company has repurchased $90 million of its stock since July 01, 2016 at an average price of $31.15 per share and has a balance of $90 million of buyback capacity remaining in the 2016 capital plan, ending June 2017.
Stock Performance
Last Friday, January 27, 2017, the stock closed the trading session at $43.12, marginally falling 0.81% from its previous closing price of $43.47. A total volume of 1.97 million shares have exchanged hands. Zions Bancorp's stock price advanced 34.45% in the last three months, 54.00% in the past six months, and 96.65% in the previous twelve months. The Company's shares are trading at a PE ratio of 23.54 and have a dividend yield of 0.74%.
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