Zions Bancorp. in Salt lake City posted higher quarterly earnings after cutting expenses and making more loans.
The $59.5 billion-asset Zions said in a press release Tuesday that it earned $90.6 million in the second quarter. The company lost $1.1 million a year earlier when it recorded a large loss tied to selling the rest of its collateralized-debt-obligation portfolio.
Net interest income rose 10%, to $465 million, partly because of higher interest and fees on loans. Loans held for investment increased 6%, to $41.9 billion. Zions said the increase was widespread across products and geographies, with particular strength in commercial real estate, one- to four-family residential and commercial-and-industrial loans. Total oil and gas credit exposure fell 17%, to $4.4 billion.
Noninterest income totaled $126 million, compared with a loss of $5 million a year earlier. Customer-related fees rose 5%, to $118 million.
Noninterest expenses fell 4%, to $382 million, as the company reduced costs tied to salaries and employee benefits, advertising and professional and legal services. Management unveiled an efficiency plan in June 2015 to cut costs. More than a dozen top executives could lose half of their total compensation if Zions fails to hit its targets. The company's efficiency ratio was 64.5%, versus 71.1% a year earlier.