Zions Bancorp stock drops as net interest income falls short of expectations

Shares of regional bank Zions Bancorp NA
ZION,
-9.67%
sank nearly 5% in the extended session Wednesday after the regional bank’s net interest income fell short of Wall Street expectations. Shares finished Wednesday down 2.9% to close at $35.69. The Salt Lake City-based bank reported third-quarter net income of $168 million, or $1.13 a share, compared with $211 million, or $1.40 a share, in the year-ago quarter. Deposits declined 1% to $75.4 billion from a year ago, and net interest income declined 12% to $585 million. Net interest margin, or the difference between interest from loans and what is paid to depositors, increased to 2.93%, compared with 2.92% in the prior-year quarter. Analysts polled by FactSet expected earnings of $1.11 a share, net interest income of $595.3 million, with a net interest margin of 2.92%. Shares of Zions have fallen 27.4% year to date, while the SPDR S&P Regional Banking ETF
KRE,
-1.09%
has declined 29.9%, versus a 12.4% gain on the S&P 500 index
SPX,
-0.85%.