SALT LAKE CITY (AP) — Regional bank company Zions Bancorp said Monday that its net income more than tripled in the third quarter as the quality of its loans continued to improve and bought back preferred shares early.
Fewer bad loans in a recovering economy cut Zions’ loan losses by 35 percent in the third quarter. The company also redeemed all $800 million worth of Series C preferred stock, which had a book value of $926 million based on projected dividend payments. Buying back those shares boosted the bank’s bottom line by $126 million.
Third-quarter net interest income, or the money the bank earns on loans, fell to $415.5 million from $438.2 million a year earlier. Growth in lending, while disappointing, was in line with the banking industry as a whole, Zions said.
Zions reported net income of $209.7 million, or $1.12 a share, in the July-September quarter. That’s up from $62.3 million, or 34 cents a share, in the third quarter of 2012.
Zions, based in Salt Lake City, has 475 offices across Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington. The bank’s shares fell 5 cents to close at $29.86 before the report, and were unchanged in after-hours trading.