July 19 (Reuters) - Zions Bancorporation on Wednesday reported a sequential rise of about 7% in total deposits during the second quarter, and said income from borrowers steadied.
Shares of the bank rose 7.5% in extended trading.
The customer confidence comes at a time when deposits at banks, especially for regional lenders, have been in focus after three mid-sized banks collapsed earlier in the year due to spooked customers pulling capital.
Since then, the deposit flight has steadied as client jitters over sector stability ease.
Total deposits at Utah-based Zion rose to $74.32 billion in the quarter ended June 30, compared with $69.21 billion in the January to March quarter.
The U.S. Federal Reserve over the last year has hiked benchmark lending rates at a record pace to curb sticky inflation, a move that has bolstered profits at consumer-facing banks that are now charging customers a higher interest on loans.
Net interest income at Zions, which measures what banks earn from lending and pay out on deposits, was marginally down to $591 million, from $593 million a year earlier.
Net earnings applicable to common shareholders was $1.11 per share for the reported quarter, down from $1.29 in the year-ago period.
The stock has lost 29.9% of its value so far this year, through the previous close. (Reporting by Pritam Biswas in Bengaluru; Editing by Shailesh Kuber)
