good Thank you, everyone. Harris, and evening
As Harris performance solid. financial our mentioned, this quarter was
However, specifically environment, curve for creating the expectation rates, quickly inverted related rate falling we to is term the interest changing manage revenue short and are which through. yield working headwinds,
return measures highlights X, on began of and assets I'll return Slide tangible equity. on profitability, two common which on
growth, we expect to continue sheet the to balance balance can we expense leverage, improve income to highlighted, control growth, that fee Harris control, areas and manage sheet including loan As actively profitability.
prior to of X% from quarter for Zions' X, period, second income million. net $XXX year increased XXXX, interest the $XX Slide On up million the
loan margin same quarter net to rate parts more the and interest than can of when the quarter contributed and at lower at decline income and be in we level, yields spoke was not XX point half curve, loan we had in more the this in much half the was high net in due of about to due interest as While little growth short-term mix. basis interest later. due year-over-year decline But growth. the to in rates the reasonably funding inverted about prior growth deposit was in April. I'll to anticipated describe cost a that detail lower a The
volume. Slide interest both XX and by net down breaks rate income
loan to You increasing also on first period. X% in average basis. grew annualized X% the quarter, our year second about over loans can ago the was that relative strong see quarter Average an growth
Over the yield loans basis year period, increased points. XX prior on
quarter, a credit be could attributed short-term is and first, prior competitive on This in the rates; new the on factors, compression yield points. declined to decline basis to loans of to recent rates the lower factors; X including This relative secondly, dominant attributable as couple loans. However, well relative several loans as quality maturing to differences. forces,
areas a next our economic We continue standards, outlier our book prepare downturn. discipline our embedded somewhat tightened a our stock we supporting the have year. therefore, composition has portfolio the underwriting select reduction repurchase as XX% This in to too translated common continue much overtime. to even of improvement results. positive yields loan the maintain of importantly, our in This in the impacted over supported stronger during to stress the in be test But standards common company's adversely and on has amount of equity performance facilitating company, about past has in
year average compared are a similar quarter. when the to We For growth prior growth X% first period. we of annualized over total rate experienced deposits, X% reporting the
from on decreased ago modest growth deposit is shown strong deposits We in about relatively with in deposits rate rising is period, the not evident to a expected through Although, which the relationship in page, this $XXX which be cost. environment. deposit banking, year the bearing million generate during or increase average X% non-interest continued balances
prior us to benefit and the cost increased first and points a previously, When consistent in have activity relationships. than public with to our this in increase more basis expectations that most exception on XXXX, our rates as reduce as over due past a discussed the to total difficult to the decline. several the change and it was our been less past generally has cost comments that deposits reported the quarter we strongest deposits be months. also The X of may with of While this we little means compared our quarter, of is pricing
Slide key margin the interest components. depicts XX net
quickly was margin deposit interest rate interest first reacted recognize down customer lower while yet quarter environment. net lower regarding to basis yields loan the expectations points to rates, to the have relatively Our XX as rates relative
Additionally, become toward weighted mix has wholesale more funding. relatively expensive our somewhat funding
While remain balance net sheet presents challenge to a interest the interest rate the growth. we significant on focused environment margin, profitable
portfolio. circles the growth with relative loan size of growth. portfolio end the period loan the XX Slide to depicts year-over-year the the by Turning size of representing type
growth. For solid consistent we nearly and categories, are all reporting
Our growth on each and outlook shown portfolio Slide is XX. for here unchanged
sensitivity rate is reported XX. on Interest Slide
been are incorporated the into priced when cost effective the path net event we have protect the we As past Market for working interest rate previously, year over Hedges quarter. or of short multiple term the expectations so the by already past falling of the rates for rate Federal been have have to cuts interest in falling less income the much have discussed Reserve. of rates hedge.
Although, look to we our that interest paused and multiple we reductions. rate rates to to decrease at for falling have incorporate continue swapped opportunities rates risk already
interest It $X against interest rate currently We to of is to $X notional the currently of quarter very important of floors after value floors have over protect Also, note with we rates. a have on books. swaps X%. rate end, of we that strike increased the meant low billion interest rate billion price
up remains income Next, of from non-interest controlled. Slide Customer products. were to ago markets X% a solid year a capital sales the Non-interest review XX. of lending expense activity on due largely strength in and brief related period fees
premiums increase X% As an all period. primary in shown Key from about contributor $XXX being and in insurance less other than and items of FDIC a surcharge. million grew expense of drivers of of FDIC benefits the non-interest FDIC XX, million insurance $X ago the million of with elimination about $XXX increase exception with of year salary decline X% of on change the line the X%, Slide the an were the of premiums to
Excluding increased non-interest this X%. about change, total expense
controls operations, we to people control bank focus on investing and technology while continued expense ahead our Looking in non-interest uphold growth. business expect to on enable expense, streamlining and
single slight rate growth, reiterating are growth our can change. be expectation expense We in which percentage for low non-interest the interpreted as
the to limit in growth. working are even Although with near-term, revenue, expense harder on headwinds we further
XX% ago was period ratio to the of to XX. XX.X%. Slide Turning efficiency year compared The
will for XX% year below We expect ratio XXXX. efficiency full continue of be our to the
the ratio seen million. quality the credit As basis continues charge-off point loans to compared with only to attributable credits unrelated classified the increased Oil there rather about of net categories. at any on and trend. general quarter X other and XX, gas a classified increase is do stand to prior remarkable trailing The X%, Slide $XX month in now stability broad adverse than XX is few
larger was a Net credit as single Harris were about charge-offs $XX of to mentioned for by the million, earlier. which $X quarter million related
allowance prior the largely quarter loan increased, has credit increase for economic period. value The net growth slightly portion the for provision dollar loan attributable in to increase losses a lower the related loss and compared year of the While qualitative these and percent the conditions. linked was loans charge-offs mentioned, when as to general to a in modest previously was
We accounting with a in next expect early CECL the adoption will standard, estimated which become be an coming continue disclose compliance that financial the including effective months, new more to CECL. position of to work toward year. in Zions impact will from I the
on Finally, depict second outlook financial we Slide quarter for months XX to next of our XX, XXXX. the relative
is our the net to interest net you that rate stable But to slightly to reduced for in current increasingly I income predict We will interest outlook have income environment. decreasing. caution becoming difficult
rates. income have short-term outlooks, the several we incorporated past in have Over interest provided net changes not which quarters, generally
changes rate yield the would to FOMC. curve, we rate the XX are the into our dramatic least the short-term interest environment, the decreases current imply incorporating which by basis due points shape of outlook recent of However, at in
Our outlook modest income net our portfolio securities also interest balances. assumes decline in a
and from quarter that non-interest to expenses Further reflect have down overall was remains reported second as we unchanged said will the our work Otherwise, which to previously, outlook throughout carefully relatively page manage revenues. the of XXXX. we
concludes remarks. our please would open questions? the Latif, line This you for prepared
