Zions Bancorporation reported net earnings applicable to common shareholders of $204 million for the third quarter of 2024. This translates to $1.37 per diluted common share, marking a 21% increase compared to $168 million, or $1.13 per diluted common share, in the third quarter of 2023. The net interest margin also strengthened to 3.03% from 2.93% a year ago.
Operating costs for the quarter increased by a modest 1% year-over-year, contributing to improved financial performance. Average noninterest-bearing demand deposits, a key source of low-cost funding, were flat to the prior quarter's ending balance, suggesting continued stabilization. Tangible common equity demonstrated robust growth, increasing 28% over the past year and 8% over the past quarter.
While classified loans increased 66% quarter-over-quarter, primarily in multi-family residential loans, management expressed confidence in controlling credit losses. This confidence is based on strong borrower equity and sponsorship in these deals. Realized total credit losses remained very low at an annualized rate of 0.02% of loans during the quarter.
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