Zions Bancorp. in Salt Lake City reported a spike in quarterly earnings after posting a larger credit to its loan-loss provision and reducing noninterest expenses.

The $55 billion-asset company reported Monday that its second-quarter profit rose roughly 89% from a year earlier, to $104.5 million, or 56 cents a share.

Zions recorded a $54.4 million credit to its provision, compared with a $22 million credit a year earlier. The company said the decision was partly based on sustained improvement in broader economic and credit quality indicators.

Net interest income fell 3%, to $416 million, as the company recorded a roughly 6% drop in interest and fees on loans. Zions' net interest margin compressed by 15 basis points, to 3.29%. Noninterest income was relatively unchanged, at $125 million.

Noninterest expense declined roughly 10%, to $406 million. Zions recorded a $40.3 million expense for debt extinguishment during the second quarter of 2013. Salaries and employee benefits rose about 5% from a year earlier, to $238.8 million.

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