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For years, U.S. financial institutions have taken the position that it was riskier to replace legacy core systems than to leave well enough alone. Here's why that's beginning to change.
April 20 -
About a fifth of regional banks look at their efficiency ratios as they set executive compensation. Ongoing revenue challenges and investor pressure could push more boards to consider efficiency or simple cost-cutting to determine pay for high-level officers.
March 15 -
The company has linked compensation for its top 16 executives, along with several hundred other employees, to its ability to achieve certain cost savings. It has also been tracking its expense cutting on a monthly basis, executives said during a biennial investor day.
February 25
Zions Bancorp. in Salt Lake City reported increased quarterly earnings that reflected higher net interest income.
The $59.2 billion-asset company said in a press release Monday that its profit rose nearly 5% from a year earlier to $78.8 million.
Net interest income increased 9% to $453 million. Loans held for investment rose 3%, to $40.8 billion, with widespread increases across products and geographies. Commercial loans were a particular area of strength, the company said in its release.
Zions reduced its credit exposure to oil and gas by 17% to $4.7 billion. The company said it expects further attrition of energy-related loan balances and commitments in coming quarters, though decreases will come at a slower pace. Energy-related loan net chargeoffs rose 50% from the fourth quarter, to $36 million, and were mostly in the oilfield services portfolio.
Noninterest expense increased 1% from a year earlier, to $396 million, as salaries and employee benefits climbed 6%, to $258 million. Its efficiency ratio improved to 68.5% from 71.9% a year earlier. Executives have pledged to lower its efficiency ratio to at least 66% this year.
Noninterest income remained flat from a year earlier at $117 million. Customer-related fees rose 7% to $112 million, mostly tied to credit cards, interchange and loans. Dividends and other investment income dropped 51% to $5 million.
