two begin on of evening, on and X. you equity. joining you, measures Harris, good return I’ll profitability: Thank and tangible us. Slide assets Thank This everyone. on highlights for common return
earnings period, These the items As Harris losses well. loans pertaining provision credit on for per noted there his some ratios elevate the to ago recoveries served negative in our to charged-off. previously the notable share, interest in year as namely and comments, were profitability
return items, assets tangible common the two quarter been these approximately been on the go have return in and Excluding approximately have XX.X%. would equity year on X.XX% would
are balance profitability. recent trends We sheet with pleased generally the in
improvement of to with prior the capital slowed successes and in $XXX quarter XXXX, in X% net year Slide further we million result X, rate On has $XX achieved credit Although interest to income up combine of positive operating XXXX for expansion first returns million. continued strong leverage performance the of expect from solid the Zions increased from sheet balance the period, XXXX, to profitability. through
of the recognized both relative detail, Slide loan did a income discuss is volume, period. quarter which first of X.X%. recoveries in Breaking but detailed to that growth in X% ago rate attributable the down the I income the moderate Excluding We interest XXXX net in from rate presentation, environment, will about benefit earlier higher this experience increased interest interest the later in more much net and average income balance interest growth XX, interest our can on see by you net year the to sheet growth. of were
quarter growth in an the slide, quarter the X.X%. was discussion to deposits. Shifting on listed fourth annualized to not period-end first Although the the the relative
Given of increased period. the rates, portfolio. the short-term with are recent year Average the pleased our performance X% increases from deposit interest we deposits ago in
year in deposits relationship continued We bearing Relative with declined some, and which relationships strong the to in and of a deposits were The through banking period-end bearing X.X%. the quarter, explained is through relatively X% is deposit noninterest of declined demonstrated banking likely believe most more and noninterest deposit average a deposits decline combined deposits bearing bearing stable, Importantly, period. are noninterest decreasing X.X% balances, valuable by are noninterest increase the that ago tempered costs. our growth seasonality. generated about but only from prior strength modest the those relatively all deposits not average
the cost in the compared prior or X of relative is Our similar beta size immediately the change funds basis to previous the type, of portfolio. by basis saw by XX% the or only total portfolio increase bit the to hike first we growth a year-over-year Reserve deposits has been When our with funds is the growth XX loan deposit costs circles closer, about Examining of representing relative the XX quarter, repricing quarter the loan rate in points the in the deposit increased depicts size of a third the federal the quarter. since what rate, Fed period-end points, of about a fairly which to XXXX rate that preceding cumulative XX%. of Federal Slide
loan consistent are and all we nearly reporting categories, For solid growth.
You to yield, to points the LIBOR. of margin. quarter, our loan will top Slide in growth portfolio increased current type the securities accretive XX new year the to the interest aforementioned to prime that which increased components during to indexed increase the breaks overall premium was with basis investment securities X.XX%. X.XX%, stable adjusted Slide Relative XX quarter each recoveries. in when net prior for our portfolio down the basis on loan to of The being primary prior has the The XX yield improvement the which loans XX consistent line quarter, area and XX% factor added prior the driving relative and quarter interest short-term is basis the from is yield securities and key ago nearly points on That is or the quarter either also remaining rate from outlook modestly amortization yield portfolio. a for of find XX cost X% the up points
bearing in for net a funds, cash over These flow When interest at interest the and demonstrates have the for going This bearing respectively. rates year, points cost the increased in portfolio risk the continues securities extension expect noninterest same because borrowed the basis points value to to month. of the demand a XX% portfolio some accretive increased our X XX – decline comparable total the limit levels from be reinvestments to the be of prior recent differential excluding bearing margin to which XX the even net approximately rate XX period. to resulting point basis higher interest versus Year-over-year, of duration success quarter, this funds deposits all we X – prior curve, the million Cash slightly from efforts of prior period, in With are increased funds, interest net flow of quarter. margin these of includes quarter, $XXX This of recoveries deposits over to from higher, experienced of funds, the points, from This as year. yields security about points in basis the compared the five-year moved while cost The cost result in which in if X.XX% level basis basis less the a investment per interest ago. from the total the we basis remains increases quarters portfolio funds of borrowed beta by important, basis elements forward. for XX interest interest several in the and prior combined funds of portfolio. the is XX expanded margin the points funds bearing demonstrates interest point total points prior environment.
earning of expansion of noninterest being bearing a higher-rate and value one substantial for operating in more noted margin accounts wanted noninterest this deposits prior interest contribution the between nature in of we the decline highlight drivers are of environment. Because As has basis prepared previously, we expect and interest shown a I protect to my by of businesses increasing our points deposits reside deposits spread the for interest in doing if bearing appendix, margin prior in our investor the net is the households, basis on highlight from period. the the somewhat is hedging of against of to difference period, expansion The Page but discussed funds. remain recoveries interest average spread and earnings net the the recognized interest I assets X short-term adjusted due will previously X competitive that the release, also points advantage. a the on compression XX interest typically in because remarks, slight to the XX Slide sources to from the noninterest bearing rates. in decreased
ago, asset as short-term three increasing months As begun trend we’ve the our to moderate we of matures. announced recent sensitivity position rates
$XXX You’ll of rate and million quarter. of we billion $X see added that, floors rate interest during the interest swaps
As with into interest over moving distributions such capital our we other undertaken – measured the to several a securities, composition sheet changes positioning and rate pace. years, investment as balance cash past expected taken at change
Finally, by to be we cash repricing this such deposit rates and as short-term likewise The interest remain stable, margin longer should to expected reinvestment. pricing. relatively stable, relatively driven outlook loan portfolio our flow interest the risk flows remains factors net maturity key securities and
wealth Noninterest focus rate our we Next, of a a and brief risk, credit review noninterest remains in income from on interest fees we specifically their and us and rate earned interest which fees, fees customers of are and sales XX. income growth swaps, services. help letters loan for Slide – of management customer-related experienced manage
those of categories – However, was some effect commercial offset that – customer income income deposit the by credit declines including deposit net higher in rates on fees, earnings balances. of
charges service business products. certain decline a retail modest experienced in we on small Additionally, and
would noninterest to key discuss the change results. Slide financial presentation a is on I of note we expense, XX, like which our in Before
net have interest This and which unfunded a was for losses, allowance quarter and allowance as moved losses forward, going the interest netting against commitments, to income. for previously lend expense, income to right noninterest net that reported we presenting loan thus, credit – be closer combined next up to for the provision lending
in million As our provision that, quarter. $XXX expenses for lending year in no to commitments noninterest a million Noting the increased unfunded noninterest is result, the from line. longer expense ago $XXX
key in letter all to quarter thoroughly is more in we reported compensation, we slide, an the of increased are This worth very call. which of reward the for and for banks last and quality. been which XXXX, significantly premiums as compared quarter’s appropriately I benefits due Zions, in shareholders it’s to financial roughly a first good our for detailed eliminated. in increased employees, to last results are to in on Also to reduction has much are team profitability Harris’s which depicted that some increase of FDIC credit insurance As down large improved designed $X Notably, discussed performance. million year, when the FDIC which mentioning surcharge
expectation forward be can range. reiterating we low noninterest our single-digit – Looking the growth, growth slight in expense, for on are as percentage rate which interpreted change
efficiency first continued to Slide XX.X%, year in of XX.X%. in have calculations ratio first related each efficiency and, We was the The increased are more year ratio seasonality year the Turning the of there our to ago committed remain to seasonal in them of expense XX, to stock-based efficiency improvement to the of interest the second-half ratio taxes compared than the payroll XXXX. and of in days quarter compensation. period some in the income that course,
Regarding in decline from including charge-off as and the to continue we seen most a ago figures improvement of loans, credit picture. year quality, assets in on report indicators, XX, classified net credit strong our Slide nonperforming the
on loans improved prior XX losses Even the past bump other reported prior ratio X% prior as The outside as in experience in continue with were classified picture versus was loan most plus a of zero. quite of the quarter, we the the stability as improvement categories. that quarter, to attributable charge-offs and for in allowance and XX in to one the release Nonperforming earnings with Compared for due the assets slight to gross quarter the days net up credit, increase largely quarter, provision strong. loans. percentage of by stable attributable of is loans and to general a oil charge-off we but classifieds gas Page seen
next be varying expected when near-term will on for to more a becomes this quarters, position are over volatility expected in of with ahead, disclose loan is to impacted transparency known including and the expected less financial by, adoption – among our new expect more accounting will CECL. modeling, loan expected last macroeconomic this we coming time current will be to standard as performance estimate among differences, a items, banks and the loss the composition This the effective. in Based be other trends including comparability upon credit impacts Looking effective also decrease in new credit in financial at lives. expectations compliant Zions which portfolio estimated be year. we schedule this CECL, standard, from
increased first additions. moderately to We quarter XX, XX we significant in growth the was and Finally, on that outlook net Thank Otherwise, strength for you. to there months XXXX. first to the Slide quarter loan our This been are no our Latif, outlook somewhat which loan next financial recent open of XXXX. outlook line questions? increasing, for throughout given the the to would the of please for you changes reported from prepared concludes depict relative our remarks. our has
