Profits increase for banks operating within Nevada

Phil Levine

Thursday, Oct. 21, 1999 | 11:37 a.m.

Continued economic strength translated into strong third quarter earnings growth for several banks operating in Nevada.

Salt Lake City-based Zions Bancorporation -- which operates Nevada State Bank and is preparing to merge with First Security Bank -- reported a third quarter increase of 15 cents in net income per share compared to the same period last year.

After merger-related charges, Zions earned $54.8 million or 69 cents per share, up from $42.7 million or 54 cents in the year-ago quarter.

For the nine months ending Sept. 30, Zions reported earnings of $156.4 million or $1.96 per diluted share, compared to $114.7 million or $1.50 per share during the same period last year. The company, with $18.6 billion in assets, also said it started its "organizational realignment" in preparation for its merger with First Security.

For its part, First Security earned $73.3 million, up from $63 million in the year-ago quarter. Per-share earnings of 37 cents were up 4 cents from the year-ago quarter.

In the wake of its acquisition of California State Bank and Reno-based Comstock Bank, First Security reported total assets increased 17.6 percent to $23.3 billion. Chairman and Chief Executive Spencer Eccles said the merger with Zions is expected to be completed late in the fourth quarter.

Also reporting third quarter earnings was Montgomery, Ala.-based Colonial BancGroup Inc., parent company of Colonial Bank.

The bank reported a whopping 166 percent increase in net income during the quarter, from $11.4 million last year to almost $30.5 million. Net income per share jumped from 10 cents to 27 cents.

The increases resulted from several changes in the bank's operations, including the sale of its Colonial Mortgage subsidiary, the merging of its 13 retail mortgage offices into other bank offices and the sale of its Dalton, Ga.-based branches.

San Francisco-based First Republic Bank also reported a modest increase in its quarterly net income. The bank reported net income was $5.6 million, up 5 percent. Earnings per share also rose modestly, from 54 cents during 1998's third quarter to 57 cents last quarter.