Zions Bancorp. (ZION) in Salt Lake City reported flat second-quarter results after it redeemed trust-preferred securities and refinanced debt.

Net income rose just 0.3% from a year earlier, to $55.4 million, or 30 cents a share. The results included an after-tax debt extinguishment cost of $24.9 million, or 14 cents a share, tied to the trust preferred redemption and debt refinancing.

The $54.9 billion-asset company said net interest income, after a loan-loss provision, rose 9% from a year earlier, to $452.6 million. Total loans rose 3% from the second quarter of 2012, to $38.2 billion. The net interest margin narrowed by 12 basis points from a year earlier, to 3.44%.

Noninterest income fell 3% from a year earlier, to $125.1 million. Noninterest expense rose 13% from a year earlier, to $451.7 million, largely become of the debt-extinguishment cost.

Zions also said will spend $200 million over the next five to seven years to replace its core loan and deposit systems and upgrade its accounting. The company began the process during the second quarter and signed a contract with Tata Consultancy Services to provide the new systems.

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