ZION - Earnings call transcript Q2 2022 | Zions Bancorporation, National Association

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Operator

Greetings, welcome to the Zions Bancorporation Q2 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator instructions] Please note, this conference is being recorded I will now turn the conference over to your host James Abbott, Director of Investor Relations.

You may begin.

James Abbott

good and Kyle, you, evening. Thank to We our call discuss conference second welcome quarter you XXXX earnings. to this I would results like we to remind you that making statements materially. will during forward-looking although differ actual may be this call, call. encourage apply the deck information equally made or and to to press with of presentation this X, slide the in statements on disclaimer We this you non-GAAP release the dealing Slide forward-looking review measures, during which at zionsbancorporation.com. A the available slide release deck well as the copy as of earnings are

For Chief McLean, today Chairman prepared Keith Chief remarks, our Harris by Burdiss, Chief to Credit our today, Officer. our remarks, will a Simmons, President by Financial we results Officer; of Officer, will Morris, agenda a Operating With Officer. Executive Chief and session. is XX-minute and us question-and-answer review anticipate After Risk Scott provide Maio, Paul followed opening hold Chief financial Michael Officer; also and our brief

limit one Q&A, your ask will the During time one now participants Simmons. turn question over questions. enable follow-up primary to I the we other to questions Harris to to that request you and

Harris Simmons

the Thanks Beginning horizon. some much, as Slide this are call joining there James, near-term evening. those that Zion's as you well be to particularly and over our of to very all are applicable are prominent things who quarters that X, to on welcome recent likely are

of approximately basis think the think in interest target First, XXX of detail, in X.X% of will rates. I pricing market in we an very year we're futures or spring funds a is Paul good as discuss by upper increase next greater for The about in a rate points. -- Fed position rising we're

rate a hikes, generally for remained well a to to the during movement variable lag yields or loans while faster for rate beginning recent quarter lag see longer-duration typical reprice to funding Despite loans, of low to securities asset and higher longer due Our a benefits the correlation our month significant to a so costs and have liabilities. assets or earning in rates and beta and and we're already contained.

flows expect relatively underwriting the We when we or interest during portfolio of also significantly will that and we increased borrowers' of higher in standards. rates loans We've robust achieved the growth underwriting rate billion strong are under a somewhat annualized loans, $X.X PPP perform estimate while our interest Exclusive well environment. loans, maintaining X.X% the quarter. higher period-end loan impact cash

was rate real to our of is example, in and a probability charge-offs growth of consistent would annualized year over likely half not. over In the in the recession as very lowest recent our past We industry that the double-digit in For than our the the rate. been one selection commercial near-term net has growth the loans recent just resulted appears of whole. to risk for ratios the loan It expect years, estate has growth group. loans peer from of more slow a

monetary quarter the about balances in total first half portfolio. of policy deposit become of in Turning the with to over the period-end from of came started deposits, Fed's the quarter to most $XX of tightening or experienced deposit impact our recent reduction more, attrition deposits just apparent, constituting million accounts we as X% XX%

attractively continue the expect and that to ample us to liquidity continue funding. our will granularity priced of and We with deposit provide base

residential name safer other segments We're a low while enterprise few. during mortgage development our estate, loans the strength loans to value lending, land starting of concentrations jumbo quarter. cash profile sheet. such relative risk capital loan-to-value a and from a in well commercial and portfolio $XXX We generated a securities are position increasing recession, municipalities, of than as limiting having concentrations for many high-leverage in flow prepared our lending, balance with spent more to that years million significantly And loans is of certain strong to real reducing the or within generally

X. And which Circled in PPP generally are financial was interest quarter. are pleased Slide X% quarterly revenue prior a if the growth rates increase. equivalent this about relative increased net with slide. income, if on XX%, the PPP, not results, pre-provision Turning was increase the Adjusted it summarized XX% taxable and revenue increased Those expense net about We're excluding green, to of to XX%. annualized. excluding adjusted

metrics of attrition And PPP experienced forgiveness, previously as growth. loan for we'd Paul discuss several will strong adjusted expense are in momentarily. clean. higher credit very something Non-interest like Our than quarters outsized following when deposits to while noted, growth came was see,

the Slide the loss Moving the earnings for we to bottom-left of Comparing difference economic was per was seen reserve the the was most the quarter provision be on share a Diluted quarter, added first second as variance, as $X.XX. the an to credit can probability negative which $X.XX to chart, increased slowdown. X. single significant per reflect loss, share in

side PPP The in $X.XX income quarter. Other are the first share was per affected loans, earnings the noted from other page. per factor from share earnings share was major per $X.XX this which on the interest of affecting quarter, items down right that

X. Turning Slide to

latter on was most or in the loss in net million. notably securities quarter shown the The of revenue $XXX which adjusted eliminate second the press Our pages the slide are release gain deck. adjustments pre-provision

that quarter. received income, the performance. to high-level our Paul of external Chief portion chart, our denotes the we've I'm the PPNR going that we Burdiss, each the $XX services year XX% Within direct overview, of PPNR million provide in Financial in to of net professional expense. With top second an over related detail the These Officer, period. Exclusive ask Paul? loans contributed to PPP column adjusted of PPP loans from to ago additional PPNR revenue increase experienced financial

Paul Burdiss

when quarter. on strength home XX. for Slide compared X.X%, from Thank while loans points was quarter the performance loans mortgage, good the interest prior rates. which everyone, billion you, from On Thank $XXX declined the first Good seen million appendix total of million. growth. and or be attributable you or going industrial, evening, us loan to quarter, period-end PPP and for highlight and primarily billion in thank period-end in this residential top. $XXX Areas Harris. you, strong non-PPP everyone, increases Average the XX non-PPP as and evening. yield to I'm Average on equity, increased owner-occupied loans basis included The to to significant a Slide average $X.X and increased us. increased commercial in can loans X.X% start average $X.X the is joining X,

XX X.XX%. from yield loans, improved basis points PPP Excluding X.XX% to the

We the quarter. by expect quarter total remain moderate of our the to XXXX. rate stable Shown on increase loan was a deposits balances at costs the of X cost low. right, at just second basis of in Deposit growth points second

deposits declined X.X% accounts. Period-end balance substantial deposits quarter. or the attributable billion of to portion average $XXX million X%. large linked or Our $X.X A low-activity declined runoff was

customers acquisition-related Some activity. merger of and our experienced

While much is as several these money months seen over of recurring, activity And of some we've brief expected, size of the caused of influx that this deposits. move transactions elsewhere. a large the past

pandemic volatility we planned for for as noted, period. unusual and have from balance the Harris our deposit prepared customers emerge As are

the pre-pandemic money reflecting of remains period influenced at size deposit show The securities is billion, the the we rates. points both. quarter's the XX%. by securities market quarters. and securities XX remained which in market securities $X.X balances yield. trend deposits. X Slide now over on quarter balances and of interest left flat income and the We end, over securities chart The new is Over margin. over five-quarter anticipate which decline in quarter to interest and investments three decline had average of the net is X. significantly combination than quarters near our purchases. an the the overview slowed of which portfolio prior associated previous last of of our our higher for above Moving interest net average We yield will is X.XX%, income, the is loan portfolios recent term. declined money somewhat investment an period-end net XX% securities of to about as basis revenue and that $X.X investments shows interest The market of Money The billion the total assets purchases five Slide

year, While margin XX is in rates, interest gained Also quarter. with the net XX past The white current points which our points. to the basis improved the by net rising margin net income it about of basis improved asset the in the the largest interest effect boxes estimated trended PPP loans, down combined interest excluding is sensitivity. contributor over has shown

income. assets are repricing improved earning than in our interest resulting expected, our As deposits, net faster

strategic traditional the regarding in Over latent emergent sensitivity. PPP-related interest sensitivity. changing the our two largely securities The information provides rate sensitivity have repositioning Slide the useful. terms, interest rate are rate been disclosures rate with past XX portfolio. less the about has environment revenues of and decline somewhat new Therefore, made we introducing our sensitivity interest rapidly replaced interest year,

Like near expect Recent been place income fully a sheet we net to will balance instantaneously. at spring, these the rates yet sensitivity. interest does I recognized latent statement in through coiled XX, and work reprice First, not sheet describe interest our were changes, in over increases in income which rate not because have balance June the term.

accordance With interest interest sensitivity rate risk sensitivity This expect interest and combined increase our disclosures, percentage rate estimates, point to a reflects beyond the income an over has net year. interest volumes only quarter XX% and sensitivity XXXX and yield June our to of interest latent rates, to and of compared would will interest of second in to curve We will at to rate to of by estimated points shock to assume income a rate income and net first In decline quarter XXX in to meaningfully approximately XX, the Both We earning deposit in second income basis second denominator. when modeling interest declined interest about and pricing rate due in XXXX second XX. XXXX. deposits, from net add the emerging by and changes in expect words, in to net would this swap net to for add portfolio predicted move the loan the our and change the example, as add interest rates. an non-specific respect to we sensitivity manageable higher X% path consider with assumptions. forward assets which expect the risk flat our recent latent quarter. additional two parallel income other deposits that reprice coming interest maturity measures our traditional growth loan would the In that expected be continued changes the when increase growth interest summary, rate latent interest compared remain emergent with quarter

to non-interest on Customer-related of Slide Moving XX. prior $XXX prior over income million, and XX% was increase over quarter an X% non-interest year. income on the the

noted, overdraft been third the our we practices funds has in and non-sufficient beginning As modified quarter. have

We expect Slide for XX outlook quarter customer-related reduce income non-interest these flat was changes remains by to this XXXX the Including the quarter to prior $XXX per will $X about quarter our million at second quarter stable current run from of compared the rate. quarter. the reduction, Noninterest second non-interest on in million. income when our expense

in compensation growth. increased and relative in expense by and been expectations an first market current inflationary invest While base the reverted compensation was reset labor of year profit expectations. and quarter the expanded sharing pressures PPNR as levels, full staff offset salary Higher as Incentive the toward as certain increase base to quarter share-based salaries. accruals increased that to we items growth EPS again seasonal such tight recent our reduction lower future have reflects for

non-interest is second moderately compared of for Our second the quarter adjusted of outlook the expense in to quarter XXXX. increase to XXXX

on the highlight loans portfolio, quarter classified Another classified saw X% prior of continued and the the problem to loans, in criticized and loans. problem the quality XX%. Using balance the continued loan illustrated excellent were Slide of broadest XX. our definition significant loans improvement credit quarter, down Relative we dropped for was as of

build measure X of in net average The is the Slide to volatility several basis charge-offs. the allowance the with see non-PPP loans. points of for credit quarter, use prior charge-offs of on quarter, Shown in in recent million the our reported relative that second basis the the in one second losses, only net $XXX had the to of course, points of bottom to most ACL for prior loss we non-PPP quantitative right, ACL the the economic contrasted chart loss loans stability and credit or trend X credit stable can net quarter. end of Of was or relative quarter. quarters. to quality. the over scenarios X.XX% were the important We rate loans only ACL, XX provision the average charge-offs details the At was the the our annualized past

qualitative However, ACL we of to in the assessment, change probability the This driver of increased in primary was in recession. our the loan the ratio. outlook increase

Our loss balance position shown We generally position and bank. believe sheet ratio the the Slide capital operating is on that absorbing with aligned is capital our risk is now X.X%. XX. well CETX The of

Our stated be in above unforeseen we will stock the We risk. ratio which goal median internal million believe CETX or common that the slightly us external of positions continues quarter. second the well repurchased at to capital peer or remain for $XX

meeting the expect Board regularly third any for annualized by made we our As repurchase quarter a or a The XX in risk to charge of as of on right reminder, board rated Directors, announce this with as share of are chart and actions side decisions offs such, coming the second capital net the quarter dividend Friday. shows and scheduled conjunction our percentage assets. Page the recent of

matched you in intentionally and for aside to both have this the capital during losses. equity. of credit magnitude losses of losses the the the allowance can form order charts, The for see aside incurred so for relative common losses, set We unexpected expected scales timeframe, of that set capital the on

financial repeat the that relative outlook is losses, profile. detailed for the out Given to more to our which course not the interest will XX the XX presentation, than discussion. for of I Slide point appropriately feel outlook over Slide relatively summarizes other level this refers capital low provided risk to our we strong of net position our income

XXXX, this second the XXXX. a for to quarter please actual the estimate current subject our the As the to results normal reminder, in This seasonality. for as financial represents quarter Kyle, line performance of prepared remarks. compared outlook our in are The for quarters the reported second concludes between of open questions. best

Operator

will your a Please Usdin time, is At Our Ken we proceed question question-and-answer first with question. you. be this [Operator Jefferies. Thank conducting Instructions] session. from with

Ken Usdin

to growth And the wanted ask, and Just loan NII one the on deposit mentioned side. changes manageable likelihood follow-up securities that volumes a Paul you've and moderately in shrinks. increasing portfolio

about latent, a increment 'XX? X-rates? on think of to top emergent we like, be think that kind could of else add do the we when of that that the XQ and How netting So, about net all factors by just

Paul Burdiss

up, If I understand I your question correctly and please, feel have free to if follow not.

and which emergent absolutely should latent added measures, be You the as two should consider together. different

assumptions. -- to an sensitivity is that flat, but churn in of within with measure, the the of say, Within there the is as to balance accordance continue kind latent all I tried sheet our assumption deposits

pieces go So, Yes, rate are all sorry, of be rate estimates. meant those risk these in and interest there, sort ahead. are of to only

Ken Usdin

Yes. No.

else growth net around So to other, everything the that I'll base? then base, as and X% mix additive plus all rephrase. is to Accepting the XX loan

Paul Burdiss

in related to to as outlook, grow. And The to we growth. to largest stated loans loan expect we continue our be is part going

rate yes, add that So, expect would to I base to measure. that

Ken Usdin

the can forecast, give forward, then know past us an talked original of deposit to on moved you've upper all, And just any -- just about the update in how fairly just Okay. it's which moving your the you're at beta's teens? that thinking I changes you in

Paul Burdiss

original Yes. a forecast. change There's our not to

to the separation it is see deposit quarters. us of will to we'll to week Although and to change see rates next industry. to couple see hold we've rates over the expectation rates, those probably I I and to going the industry, ability change movement the And as rate course for in seen opinion, the across you're of and that the this banks really given start my say, again, in I think for we're in think a going that My their lower. continue relates

been beta. start little think as be we're going noted lumpy, to changes. But I for have changed We our and deposit has it might those outlook see previously, bit not to a

Operator

your Our Please Dave with next from Rochester with question proceed Point. question. Compass is

Dave Rochester

the through to guidance? NII the But the churn. mentioned you'll year that still of year? thought guide. great I growth definitely the end your when measure your Paul, you net the see. was baked Is on Or like get when Is this quantification of is flat there to continue outlook that next on say the or Back down? some into churn, appreciated over new that you it deposits more

Paul Burdiss

the we that flat outflows remarks, opening the to it's My down. is deposits noted as to expectation his of in say, that would -- in saw deposit closer XX% I quarter it's to Harris going were over compare depositors as be deposit our be granularity relates who and to portfolio would some going have more are large portfolio, And of that rate-sensitive. we I to million. while do it nature $XX to anyone clearly the were

so, us for those but deposits. continue be would dollar lose my six important that of be may expectation And larger to managing those carefully some next over months, we will the

Dave Rochester

And just thinking on that and think sheet here? you you'll are Yes. liquidity Do fund just you balance going cash have tap a the as sources to securities forward? loan net then growth quick wholesale you follow-up, to use can from

Paul Burdiss

the of trickier generating been question. principal of is about we bit that $X next That's and will several continue somewhat quarters. expectation that the billion a and securities prepayment and have for portfolio, My amortization speculative on and little a

and remarks be here said for that little to reduction. cash So, fact, it's I I loan I planning of from securities a source prepared in the cash portfolio between for expected bit of that expected funding in to my both us. declining was, Part a ready the securities reason growth portfolio

Operator

with with question. Our Evercore your Please John proceed next Pancari question ISI. is from

John Pancari

extent flat is just saw downward incremental of the half deposits lumpier in the magnitude the terms mentioned were M&A this what the of incremental because move? that drove you of declines the that declines, down, related back less to your there On should the in you to color be than deposit that the quarter and

Paul Burdiss

I'd is, assume do And run as I move relatively interest modeling, extent all beta we say that's that said, of small to in our John. I'll demand quite to that's those rate a away sort deposit the risk there note possible, assume or deposits that interest-bearing. into that We figured churn In figures. portfolio.

deposit there. perhaps So but largely entirely as in deposits, portfolio our for in the already not the greener would for have think about I expectation we most are expect pastures. interest changes sensitive sensitivity, exited those But

John Pancari

Got it.

Okay. you're And then you bought know bit terms that kind it door buybacks the the where I maybe on second and open the could us ratios is separately your little expectations the guidance left capital see lie? your front, at now? we in XXX,XXX back a capital And of commentary, increase outlook and in you the quarter. Can and your of from pace your of shares give where of your in buybacks likely color here given an in you

Paul Burdiss

I going even bit note be was Well, willing down to ratio that's be I our little the to Ultimately, do were up though to a the CETX quarter. that in quite strong that. board. wouldn't the say earnings

anything the about shock expect of to capital earnings noted, through little we would as increase, loan you -- and think and continue ends to our being up a we buyback a continue we as Harris, that? add growth. So growth absorber to earnings bit

Harris Simmons

our first capital preference to be quality loan I use that, to support would say growth. mean always Just to

I on strong that in can to And I hinge think expectation will next can see mean extent pretty consume few growth the here all that. quarters. is you -- loan capital. will the it PPNR is be that that that to so our going emerges, And

be it amounts a doesn't, of I larger expect I If it's that at we'll think fabulous looking buybacks. thing.

Operator

Peter next proceed your Wedbush is Our with question. with from Securities. question Winter Please

Peter Winter

Can the manage an sensitivity is how the in sensitivity where adding balance terms to? you bring left sheet of down and like give update to much swaps to you'd asset

Paul Burdiss

is This Yes. Paul.

interest additions changes, the denominator net becoming income outflows. our some of just a and through is swap portfolio including sheet larger larger, is sensitivity asset Our and becoming that combination our deposit balance

quite a income interest actually has bit. sensitivity net fallen Our

But over add continue could that to I time, sensitivity swap think I be make of ultimately portfolio we there are asset that certainly to we we're our closer today, think ALCO than I would less we're probably an it to were today decision. to sensitivity much closer getting although where our where -- think a getting to from target sort be. year ago, is

Peter Winter

passing credit Okay. just see off Obviously, to pressures on very with increases you customers? but inflation to the the credit. maybe strong, And borrowers then stress any commercial trouble on are starting type is the of price having

Michael Morris

Morris. I'll that. Michael Credit is to I'm This respond the Officer. Chief

stress would our clients We liquidity lot core that stress of able passing bit those seen so a have customers little to detected not through a or indicators period have of there, seeing be a And it what suggest there. any are been to had not their haven't on. pass yet. with lot a forward cover settlement to have Most might that of

Operator

Our next question. of Bank question is from America. Ebrahim Poonawala your with proceed Please with

Ebrahim Poonawala

Just seems of, probability in follow recession up a you for terms to Harris, than not. wanted the mentioned likely that think more I near-term

give Just response, a how up just reserve credit you're and the informing of how to is about do incremental from your sense and here. on that build we risk sheet balance previous think following provisioning putting that us

Harris Simmons

these -- indicators. smaller $X thin of these through the creating as million. A that's it's thick major for deck a the for of and think of things municipal a about class I give -- doing most we we our those as over the best and an a us were kind portfolio, has in any that asset Fed mortgage the really XX% been considered greater, industry. to about of X% lot I'd average of decades about quality FICO bit that as of the is tests well XXX terms -- exposure on got a of when was just credits. We've jumbo kind or very mortgages. first -- jumbo in faring when are to to the we as scores you deals were greater in doing size XXX, of fared the well models also less the are their And that reshuffle And These was I days we've the -- to say of couple it's of doing last are little Back I mean they noted, pivot. that not lot is thing actually of really, in just decade actually doing portfolio of were spectacular. in of SIFI -- one CCAR than

I this I So mean we collateral. kept we've over -- of I time we our lot one make part the mean that a changes that's last it over And some think so, then for -- underwrite made decade. flow really stronger. low -- losses and We're things fundamentally cash is of suspenders the the the it's

kind know what that really the of labor challenging long demographic the likely is how some One into market be into in we job we're in position. openings relative and strong are maybe come a things -- I think -- we slides, so side appendix, of we mean it's very the Obviously, the might in be. heading non-accrual or loans changes, very future holds, I to think the this recession strength of whatever relative seeing any we're recession. don't think and we one a the losses because conservative parenthetically we a that in -- that of to the industry. available tend noted the of labor to I really to of how not deep

to, that problems think, going higher Fed's for the is more I I thing cut out, -- interest rate their got the any think than have. work we but pay

little kind I So That's the of thinking around know. map don't view kind about how of of a a I'm recession.

Scott McLean

later. unsecured that side just a pre-'XX it's to to the sooner unsecured, portfolio exposure look that. be the consumer that, portfolio is exposure, McLean. we generally comparables at. no period or And go are will this virtually our there probably haven't and whether And low land Scott relative you'd very terms different -- been into last were just with There lately, of time we the card done, and leveraged on peers. There we personal they is on typical good This recession than very go exposure. I'd to add our favorable than loans, if but industry were in other into

Harris Simmons

lien metrics that add I'll almost of about quick I of are these in half home think final that might first the other give of one had those, one But mortgages of a it. respect about also the portfolio, pause, XX% are thought some that home the And first I to equity credit with we've lines look about And conservatively. similar is credit people little product credit. just bit thinking second ones respect with And And that to very deals. mentioned we're equity lien, very the lines. jumbo lien growth

consumer I So shape I entire pretty again, in -- that good think in portfolio. we're

Ebrahim Poonawala

a case? sense what in it. in does Got just assumes recession just when us scenario back quarter, of actually that whether the of it assume assumes downside base it the around or that reserves macro a -- And we base take give not versus terms and ACL to case your of at the outlook end your

Paul Burdiss

basis both to measures. And I'll Moody's Well, build as we and outcomes reserve the qualitative Paul. that. start reserve. set our serve our is the that forecast We utilize is macroeconomic for with with quantitative -- our This modeled

the we done, a and remarks, as recession is relative case, have That so we for prepared And to I serving in that outcome, is say on what that, to allowance probable recession. that's emphasis that base that credit not in put of than was the that say the loss. probability to more for more basis have in as tried my

Operator

from Our is Demba question. next proceed question your Jennifer with with Please Truist Securities.

Jennifer Demba

Two questions.

that? employees are increasing challenging incentives gathering, being to changing you strategy your growth more First, with in of now, deposit anything deposit terms or like

Paul Burdiss

I ratio XX%. is if will loan-to-deposit our I -- could start,

on practice more not I'm of will basis deposits pricing say of about the sheet. -- that an we've I historically, exception more had not. the balance concerned a repricing So to level than relative particularly

so will see exception continue while we deposit increases, my And some be for the to pricing. tool rates rate primary managing expectation will is

Scott McLean

make many base other -- in that, you Jennifer, even the just that and that deposits, might are banking free the granular 'XX, points in it's granularity that to deposit the to cash. top and move we've orientation add rising revenue businesses. would on on focused our see not going it more to And a their an and times them seen those small saw trying companies, it in of cause 'XX rate the of they businesses, the I but And of the you directly because those -- to relates line medium-sized those rates, basis reported we've to in simply periods, than other owners the to past, other banks. nature them extra our they're small of at back XX periods

Jennifer Demba

on you're customer you think going offset expecting do lose? flattish funds for will insufficient also and be to of you're What months. the you income, fees best overdraft next the fee And kind said XX over the fees

Scott McLean

the That's a we're great year-over-year, really good customer question, just just -- we're growth Jennifer. range. across seeing entire in fees And our

will some -- syndications, investing we're so percentage It capital from to And increase markets, is my be areas growth. standpoint. a capital used would be, be market mean foreign basic like performer. good, mid-single-digit is swaps, solid to answer be our I exchanges other This I businesses there, it's and that in solid think, a expectation and going balanced dollar

in adjustment accounting continues notwithstanding at to rates. made fees, our a the high double-digit first growing business we this account basic -- management mid-single-digit Our And nice rate. wealth nice treasury made grow we commercial quarter at our change is fees, low single-digit,

in pretty general. we're about fees customer optimistic So,

Operator

proceed from with question. Our McGratty question is Chris KBW. your next Please with

Chris McGratty

the not Harris, potential guess your expenses a I'm maybe you I of about off. first offset pressures? wondering think And you were I inflationary quarter. how said to little disappointed these the you're prepared remarks, some with -- alone, in in

Harris Simmons

-- I we a it. be couple what incentive One of do to stronger portion a about to think what thoughts is what of half to with Well, accruing it will and respect of compensation, year. a we second needing we're be just is toward given going wanting expect the

It's -- things have, some building hard We to or really good that accruals Scott get how capital to we're And will over have growth expect we had a what much we we'll impact that really see entirely some a may we mentioned see. so there. slow up team into as but a recession, if And understand time. stronger markets hires. that absolutely actually mild nice We've -- I segment there. think just how

we're And very It's making investments so there. -- notably. been -- that's

incurring I replacing flatten kind little expect all this in last the time, And of a major area. completing of amortization to we're been the we help that think, We'll into come capitalized start sometime or a bit also, core will that, over this cost come next that kind expenses release of the we've play of last core, in So future this of call of big some of technology deposit innings should that things to But systems. piece loan I mid project, will have out of period we'll year. down. our

I think be helpful. net-net, that's going to probably

where -- a defense you just firms holding tough all you're Beyond as seeing tough in sure the deeply hold want to to it's have to. to your environment know, It's strong -- just as that, well. on you on you make it's a play you're it

right. get to to think Fed thing two, I the its road down does going that's so, start little easier as or get a as quarter probably we the And a

I think be the compensate way. we're challenge good costs going make The going that little news more have is it. probably are that the going a industry. easier is to for that life But than a to to revenues to across

Operator

is proceed question Davidson. Our from Tenner with with next Please D.A. Gary question. your

Gary Tenner

swaps. on about know can But added that just don't to apologize other amount you rate down missed quarter? your ask the I about as afternoon. Wanted thoughts sensitivity area, particular you this, about you Thanks. so rate if Good did. to any I have you adds in thinking think the get additional And talk any the side I to do then the if forward, this of I cycle.

Paul Burdiss

Yes, I'll start. Paul. this is

accompanying added, to outstanding the rate. -- amount today's I what than think slide provide deck the where release, would pretty So just rather point of then would on XX and I maybe Page you focus we to earnings some notional swaps disclosures on of you good I we've associated the point fixed

be predicting interest asset scale mid-single-digit I'm what to that clear, not our that XXX of to rate at asset Specifically to change and but would that of another swaps. were would prior the relates question, point get saying, to down basis example, To going a require into of rate our rate basis sensitivity June sort as if get that, sensitivity, into an I'm $X sort back as that's for range. it we billion, down maybe for we mid-single-digit XXX XX, sensitivity the shock interest be point down

Gary Tenner

in I you're rate promo And loan environment? then are through was right throughout of for second now your those terms of of potentially the you any rate specials question kind had the running kind a and while, totally are that still franchise? running you Or changing given of economic

Scott McLean

were announced business of the have cycling quarter we the programs of magnitude lending, year second for some we The but last in doing discontinued. before, through terminated promotional no, -- pricing small We're that's now. and always last Yes. consumer

Paul Burdiss

the all I'll for And fully expiration that of incorporates course sorry, several note next of that the rates sort provided quarters. that of over -- these the figure just I of quickly, the promotional latent sensitivity,

Scott McLean

They were depending off when promotional rate. roll fund one-year early a year. was -- year next this on it just will it they it, and And

Operator

And of I call remarks. question-and-answer We will over the reached closing now for end the the James session. have Abbott to turn

James Abbott

all your you, Thank the you you of today. questions. appreciate call thank who have Kyle, joined We really and

Bancorporation. next website. see again we through have through e-mail please we on listed for you with quarter. couple phone your months interest our additional in And questions, Zions me again you of you be you until or the If will connecting next Thank contact

Operator

this Thank may your your at and today's lines concludes This you participation. conference, time. disconnect you for

Zions Bancorporation, National Association (ZION) 27 Jul 222022 Q2 Earnings call transcript