Zions Bancorporation’s ZION second-quarter 2021 net earnings per share of $2.08 surpassed the Zacks Consensus Estimate of $1.25. The bottom line marks a significant improvement from 34 cents earned in the year-ago quarter.Results were primarily aided by an increase in non-interest income and provision benefits. The company witnessed a rise in deposit balances in the quarter. However, a fall in net interest income (NII) and higher expenses were the headwinds.Net income attributable to common shareholders was $345 million, up substantially from the prior-year quarter’s $57 million.Revenues Improve, Expenses RiseNet revenues were $760 million, up 11.8% year over year. The top line surpassed the Zacks Consensus Estimate of $711.9 million.NII was $555 million, down 1.4% from the prior-year quarter. Net interest margin contracted 44 basis points (bps) year over year to 2.79%.Non-interest income was $205 million, jumping 75.2% from the year-ago quarter. The increase was driven by an improvement in almost all fee income components.Adjusted non-interest expenses were $419 million, up 4.2% from the prior-year quarter.Efficiency ratio was 59.1%, up from 57.3% reported in the prior-year period. A rise in efficiency ratio indicates deterioration in profitability.As of Jun 30, 2021, net loans held for investment were $50.9 billion, down 3.7% from the prior quarter end. Total deposits were $76.1 billion, up 3% sequentially.Credit Quality ImprovesThe ratio of non-performing assets to loans and leases as well as other real estate owned contracted 2 bps year over year to 0.60%. In the reported quarter, the company recorded net loan and lease recoveries of $2 million against charge-offs of $31 million in the prior-year quarter.Provision for credit losses was a benefit of $123 million against a provision of $168 million reported in the year-earlier quarter.Capital Ratios Mixed, Profitability Ratios ImproveTier 1 leverage ratio was 8.0% as of Jun 30, 2021, compared with 8.4% recorded at the end of the prior-year quarter. Tier 1 risk-based capital ratio of 12.1% increased from 11.2%.At the end of the reported quarter, return on average assets was 1.65%, up from 0.35% as of Jun 30, 2020. Also, return on average tangible common equity was 21.6%, up from 3.8% witnessed in the year-ago quarter.Our TakeZions’ strong balance-sheet position along with its business-simplifying efforts bodes well for the future. However, given the near-zero interest rate environment, the company’s margins are expected to remain under pressure.Zions Bancorporation, N.A. Price, Consensus and EPS Surprise Zions Bancorporation, N.A. price-consensus-eps-surprise-chart | Zions Bancorporation, N.A. QuoteCurrently, Zions carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings Schedule of Other BanksAssociated Banc-Corp ASB, East West Bancorp EWBC and SVB Financial Group SIVB are scheduled to announce quarterly numbers on Jul 22. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Zions Bancorporation, N.A. (ZION): Free Stock Analysis Report SVB Financial Group (SIVB): Free Stock Analysis Report East West Bancorp, Inc. (EWBC): Free Stock Analysis Report Associated BancCorp (ASB): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research