ZION - Earnings call 3 2023 | Zions Bancorporation, National Association

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Operator

Greetings, and welcome to the Zions Bancorp Q3 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce you to your host, Shannon Drage, Interim Director of Investments. may you Shannon you, begin. Thank

Shannon Drage

Drage, and Thank disclaimer will differ with We of in information to encourage to the the to earnings. X of dealing remind We are Investor review or made be Shannon during presentation you applies the release you may the copy this that call, presentation forward-looking evening. which call. as release conference available you, the My equally I forward-looking well call we like earnings is quarter making statements press and Alicia, results presentation this Slide third to zionsbancorporation.com. welcome XXXX measures, statements, at A materially. of actual you non-GAAP the as this of to good discuss would Director Interim during name Relations. our although

Chairman For provide remarks. will our Executive agenda Simmons, today, Officer, Harris opening and Chief

Officer. over Paul Chief results. Officer; comments, Chief Harris's we hour. call Chief Burdiss, will Derek Operating Officer; will Keith Financial us Officer, X will McLean, the scheduled Credit and Scott question-and-answer and with Simmons. Following session. are Risk Steward, prepared This Also our our hold is President turn Chief financial Maio, our review now I to for After Harris time a remarks, today

Harris Simmons

customers been what Company, with in way and their that focus call -- own financial in October Bank developing to Thanks its a Savings to deep Bancorporation communities very the much, for bank, which and prudently this Shannon, over strong XXth think built of of bank anniversary think which like to helping this decades serve that's steadily opened business we I'd persistent the roots develop is on evening. foundations. many ancestral and of is right the 'XX. a our Zions Zions welcome and you we want of celebrated was XXXth all Trust as recently we

workload very over family great will And noted, associate a and value. housing Chief his with most continued his West to building this somewhat. I'm wanted so he I call the I get know other Morris, look important a It's prominent this past on role that Michael a future, one Shannon position really health pioneer focused to is Michael pleased many of in over the deal the well as role to this continue and today, projects reduce assumed Michael capable past Officer the very have us challenges with that very One us a years. Officer commitment us for as values and decade, Michael forward company. Steward to and add of numbers, recent should in he'll has affordable the has great conclude role. demonstrating who our during comment we thing before that on decade served quarter, retired the and capably these led Chief that institutions, history into welcome related Credit some past Derek the where due we we Credit he's close on served on that the into to the Derek from

stabilization deposits. deposits borrowings have prior quarter. of some and quarter themes messaging Customer from applicable the customer deposit the grew the been significant this with and that remained both during was as both designs performance X, margin see into particularly these you'll the consistent quarter quarter on billion marked $X reduced short-term net the fairly which brokered reliance resulted Slide are our sustained Financial in going On So very slides. interest well encouraging. for by our as growth, of of and

rate interest hedging stabilization of to in balance and the this in our risk profile. to pretty proactive contributed margin income. We response the a manage our interest and changing and sheet to has to had conditions, actively We've net continue our and response dynamic interest changes net

$XX which common with equity the Capital prior of capital prior profile. in levels with quarter, during is We capital the recognized our quarter. X% Loss-absorbing in the line charge-offs remain to year. healthy, Tier million up to net increase X risk relative compared particularly

for quarter XXX deposit key X. points financial to We've costs in basis reported points slide, the total of Turning quarter. the circled Slide XXX included the we compared some with performance the customer quarter on flat X%, basis quarter-over-quarter. second were highlights Period deposits broker we XX%, X% third the deposit to softening end demand increased in Period deposits observed quarter. quarter. the prior as for growth loans end declined bringing loan total for

share earnings per quarter of Moving offset the diluted income on $X.XX as X, to lower revenue. to million up second expenses lower $XXX was $X.XX over Slide slightly net

Turning to Slide X.

while increase million, quarter Chief the was $XXX going from quarter lower Paul? to revenue ago was the high-level third Our pre-provision revenue adjusted asset funds additional detail some financial provide year XX% adjusted to Financial With I'm to in decline Officer, the Versus were expenses The increase that quarter, yields. Paul our the to ask noninterest down net related earning of cost flat. in performance. overview, exceeded Burdiss, noninterest as our $XXX was attributable PPNR down million. linked

Paul Burdiss

components I of of the you, and net will evening, with Harris, begin revenue. everyone. a Thank discussion pre-provision good

overview of interest our were repricing -- with pace the interest the income trend for net income net bars earning X/X boxes the Slide kept of X-quarter funding margin. revenue rising as interest the Net and the in interest the both. assets chart our The includes interest the and with income. is Over recent on from the quarter balance of prior through nearly the net costs. net shows X over consistent margin white sheet

in Additional Slide detail X. interest on net on margin changes outlined is the

On of provided chart in quarter the the left-hand margin. we the page, changes of side key linked interest waterfall outlining a this components net

funds by in volume rate changes and positive offset repricing. deposits associated the with loan including impact and of borrowed basis point both was XXX The expensive more adverse impact fewer

in third sources we profitability. the to quarter. to of the borrowed significant deposits funds a success noninterest-bearing continue customer continuing Our contributed through and to sheet funds level serve contributor balance moved And deposits reduced grow to broker as as of

The the quarter. on shows to points net net margin. quarter. noninterest-bearing borrowing when slide funding by versus chart Overall, asset by with XXX to XX basis Higher were costs, increased which deposit more interest by impacted interest year net contributed declined net was this points. comparison the prior adversely interest points offset value margin the XXX in reflected earning the increased than rates and of additional basis right-hand basis margin margin combined the the interest which an yields, the prior This

quarter XXXX. Our interest in relative associated across Risks of interest the opportunities quarter income path outlook third and and yield rates of outlook this with the for include is stable deposits loan curve. of the the third growth, realized for to net competition XXXX

Customer in a and over year to by noninterest prior strong decrease swap -- due on market a the Moving quarter the sorry, treasury capital offset of fees $XXX in markets versus quarter. decrease capital fees. fees prior X. the versus Slide as were management improved Customer-related income in was year year at the revenue with line prior second noninterest X% was income million, quarter to

relative noninterest XXXX. moderately the to Our outlook quarter third quarter customer-related for third the of for income of XXXX increasing is

on versus $XX side in which the ago second the the noninterest $XXX revenue property is adjusted essentially right quarter calculation. $XXX Reported the $XX on The adjusted pre-provision prior included bars revenue Adjusted million quarter at is X% blue the used expense million. decreased our this million in and in the of second expenses recognized page in decreased gain in to from efficiency expense at by sale on a revenue the second factors severance quarter. revenue the quarter. million decreased of noted and shown million $XX year flat lighter and due includes to XX in was the X% net to ratio recognized Slide Adjusted previously due chart a

quarter the Highlighting XXXX excludes time for have XXXX. slightly with impact to for Our longer FDIC adjusted of past noninterest to the our of achieving as quarter, effort line year originally fully outlook Slide This headway in our outlook is the third compared we objectives while any are assessment, expense growth expense the in in when quarter special on trends take in third made proposed the over increasing current planned. the average and our flatten to we than expect expense deposits XX. seen associated loans

somewhat that the On loans XXXX. soften, side, flat in as can continues you third stable the quarter is quarter were compared of of that current the XXXX loan to third in the when expectation will loans our average be demand to quarter left see

the excludes for deposits, turning Average right of quarter. side to Now X%, the X% grew deposits third ending increased quarter. end page. broker X% balances the balances while third of compared customer Ending deposit quarter this the deposits, which in the second on grew to

We to points quarter points the of see both XXX and XXX coming basis the during The the shown growth continue quarter. in to cost existing deposits deposit customers. boxes new white from increased from basis in prior

funding deposit fourth on the a was against measured on was sources comprehensive Slide interest-bearing for XXXX, rates includes the more As XX%, cost the quarter quarter of beta third in view deposits total and total beta of repricing XX%. funding deposits based and repricing trends. average XX the

of borrowings have as decreased balance billion ending deposits XXXX and the assets have includes chart quarter customer earning left-hand have Short-term $X The grown first trends. declined. since

side, categories On shown of the are funding. along key the with funding balances our right-hand cost average for total

current to demand notably second margin, alternatives, declined cost noninterest-bearing although XX portfolio the the As the increase. at to value interest customers the seen demand of chart, deposit funding declining have in trends, a contribution more shows this on points demand move of into first has deposit the increase from volume as quarter interest-bearing total continues therefore, basis net been quarters. and XX volumes Slide the in deposit rate and

Moving to Slide XX.

money continue funds balance in over be near flow, balance of a to quarter. and term, primarily changes. anticipate show to cash the combined sheet which to as the of our we third over market The of will the portfolios will over customer-driven this this exists portfolio last portfolio investment X were and somewhat investment securities sheet. $XXX Principal quarters. decline to source we and that investment ready funds cash slide, investment the prepayment-related With for On flows expected. a absorb million securities storehouse be behave balances predictable money continues market portfolio Our

investment rate rates, inherent deposits. to risk is to price interest This mismatch at the a manage duration X.X% versus X measure year period, which sensitivity estimated currently to X.X% changes portfolio, helps compared The and of interest duration loans in is shorter prior slightly of the between year ago. the

to balance assumed suggests deposit have bring portfolio about Slide shortened fixed rate a assets information investments duration liability modeled depositor rate portfolio, durations. comparison longer larger duration. loan and provides interest required recently observed the our behavior are deposit our our sensitivity, depositor With to behavior XX a than of term to to

assumption reduces This this actively are modeled the bars change the page managing this of asset we duration. asset to sensitivity, assumptions. in we on are which emerging In our light duration liability with labeled change, adjusted deposit showing

quarter, interest third pay rate the swaps. $X added fixed of we During an additional billion

a As sale the rising on value environment. as serve swaps to for our designated in fixed $X.X available reminder, our pay of billion hedge the level investment portfolio of books a rate portfolio

of current net interest the expected side have income. included impact implied detail on On rates this to the on slide, right-hand are we've and

to and instruments we interest the implied of have of of changes been have by sensitivity on have a fully to been as emergent that latent those occur As rate yield as expected as sensitivity occurred, the the financial interest the repricing shape our net rate yet not income curve. reminder, terms interest rate well the in but describe using reflected effects

to Importantly, assumptions remain these estimates earning deposit utilize These size are composition earlier. in the or assets assumed descriptions. adjusted in unchanged described

yield in-place work our September curve interest will income XX the of net sensitivity, time. over as latent Regarding through

we when third cost funding XXXX compared quarter a recent beta the decline approximately quarter the on based of to in XXXX. expect net to history, would Assuming third of X% interest income

path forward the in emergent of third the is emergent be if immaterial rates third of sensitivity quarter when compared materializes, to September the of estimated to the 'XX interest Regarding XXXX, sensitivity, quarter XXXX. XX, measure

the sheet expect as for to changes third As net XXXX noted relative to income balance accretive interest is of XXXX the quarter previously, interest stable of our outlook for to composition we net be income. quarter third

the quarter. assets to Loan Net XX. stable Slide the X which charge-offs expect increased office to loans fourth loan strong. the million primarily in suburban levels to points losses have quarter added Classified reserves point $X borrowers and quality loan, office were of we quarter remaining due basis million X $XX X.XX% in quarter. sell due low. with Credit loans issues, Nonperforming other loans, of Moving associated portfolio. for The increase C&I Southern loans remained X and were prior for throughout which California the market, over supply idiosyncratic million largely small allowance $XX X chain CRE XX that office the and in is in losses credit the a losses portfolio. struggled with to losses on distributed increases in for basis the

credit relates As topic included management. a we risk have XX have in presentation. the it we real commercial to maintained this regarding Slide of real portfolio concentration with in additional as the of is interest, know the over of reminder estate the included a of last we discipline commercial the context as detail information appendix decade estate

over overview XX this Credit the XX% the office CRE Slide of total portfolio or below CRE for nonperforming represents assets quality portfolio remained Our CRE time. the measures of our to balances. with X.X% peers portfolio. growth total of in loan representing portfolio. quarter increased relatively though X% remained of the XX% an strong, has provides loan office total well of CRE

$X losses loans office losses with to As based Overall, the current to quarter in limited well X the mentioned, portfolio. on the we on office across portfolio the million perform recognized economic expect in we outlook. CRE CRE continue

compares XX.X%. Slide our for position of combined well the ongoing shown Our continued when in losses, loan risk is reflected loss level the quarter third the to The absorbing CETX profile in allowance grow ratio to capital net credit with as charge-offs. on XX. low to This,

remains As uncertain, environment share macroeconomic not fourth in the we expect the would quarter. repurchases

a capital profile. managing We provided expect Slide to maintain below-average regulatory over this of strong presentation. of while to summarizes course levels the XX outlook the risk financial

the third outlook of between The quarter in to represents for as reminder, seasonality. current XXXX subject are financial quarter to results in performance third a the the the of this actual XXXX. best compared As estimate our in reported quarters

Shannon Drage

This concludes our prepared remarks.

you we ask section that the of line please to question As open to limit the to move one participants other for your request enable and to primary questions questions. questions. the question-and-answer we Alicia, follow-up call, one

Operator

a question-and-answer conducting [Operator be now will We session. Instructions].

line Our first with of question the Manan Stanley. Gosalia comes from Morgan

Manan Gosalia

in I looks like in NII here September NII. wanted quarter. you the what data When you have look provided to versus the ask about for monthly declined at September. you full It that earlier NII

drove wondering So outlook about that now if you XQ you outlined the you're could about NII and how parts thinking what just talk between 'XX? of stable and the for

Paul Burdiss

Paul. is This start. I'll Sure.

So margin do level income we the meant and interest was of out. the monthly interest of interest purpose the of guidance, some the net the which in don't provide to on and inter-quarter that both net sort the third we typically was income provided coming quarter, where net second

the begin quarter the margin end to stabilize to in the that interest margin And of seeing we meant so interest we second after quarters net sort the of during the in several interest quarter may you expected third recall outlook that. decline. quarter quarter July, And to that stated second was when -- at of net second net income compared call support to the

wouldn't much I interest net read monthly income into too figures.

interest the our income quarter of flat that, think is would compared over to that little our that can approximately third as I of in expect to ahead squirrely. year, look net a 'XX. get the next we we overall of when the which outlook, course third quarter be rely I 'XX on

Harris, to And to do you add like so that?

Harris Simmons

well. I in also the one I fewer versus get fluctuation Well, little that August. mean things you'll think as month a there's day like yes,

Paul Burdiss

you. Thank Yes.

read purpose So of given into that's my month. it's hard any to saying statement that my of kind

Manan Gosalia

the can higher as that. us from NII securities about through you up given I 'XX? bit and think repricing benefit pressure a Okay. there. the year, starting to may the in as NII do closer NIM the as term on just know And trajectory we deposit I trajectory think maybe longer near we over for appreciate next environment, with just utilizing should XQ and coming a down you for get but as side, help well we be Or in paydowns rate the to the loans the the move a get little

Paul Burdiss

Sure. had yield couple that that -- the I'll And months, it. earning flat if assets -- how the about is last is are continued over of here our our The steepening tell of you we weeks. the kind curve reprice. particularly to steepened thinking as continuing I'm in has several that inverted from flattening last

to be X a the quarters. And expect next so if points of I quarter basis the of you pickup, range in the will, couple to XX earning of sort it over asset

our funding You and third costs flatten costs begin quarters. the saw to prior when our the funding out X in the compared really in also increase quarter to

about assets those that much repricing funding where improvement interest hit change pace the quarter. that Again, rates. our is consistent income earning be based asset And the our in with to be outlook the we to keep predicated in therefore, interest from expecting expectation actively say keep -- outlook. feels on manage really that here, largely -- improvement will rate expectation, and in in we've My current margin that flatten spot liability outlook opportunity would on pace as will I the earning my net costs as provided a deposit then here, will the think from the ability the with will I'm it like for decline second net is not with such we the

Operator

of comes Our Compass line Dave the Rochester question with Point. from next

David Rochester

mix and beta got the any that, your back deposit are the and bottom factoring around What for you the there? guide. case NII thoughts guys for you've of DDA base the timing the on and flows Just if in

Paul Burdiss

me. expectation in of -- in slide we deposit the earnings in of XX provided On the But slide the continued an number materials, On rates. Slide you'll the I of increase see that in interest have sensitivity don't front actually materials. Yes.

sensitivity deposit outlook You kind rising, we expecting rates increasing deposit in can a total the the marginally. latent outlook, XX%. see for interest That provides of in that continuing, rates minus that year. latent stop that if accumulating time are outlook in continue X% sensitivity kind is of say, there to beta throughout next of over we're

David Rochester

be That great. terms bottoms of do And that and in mix, you DDA where would think when?

Paul Burdiss

predict. funding further Yes, that's to demand of interest-bearing includes of But that beta I all-in migration noninterest-bearing say more into sort difficult is a little will what deposits.

my So we see will to some into incorporated our but therefore, expectation that outlook. all continue is that's DDA migration,

Operator

Our comes from next Pancari question of the ISI. with line John Evercore

John Pancari

John, Basel I some III -- I able and other just the question some loan are actually, seeing know to below their could they're busy all some or you're there that outlook step the, sheet afternoon. It to a I growth wondered stable. to front, on if and ask looks -- up growth are I is balance loan banks like believe threshold billion with the be that. it able wanted Good RWA not. We're $XXX banks of upside that gain optimization. to the as diets acknowledging bigger share your

be here that or an have would So otherwise think wouldn't up opportunity growth quality conservative? opportunity share outlook loan gain growth to opportunity maybe a pick loan the that be I to to perhaps that had bit might you and some mean, could you there

Harris Simmons

so forecast don't around we -- think Harris. always because is may growth have loan I it's I've growth some. on in. else. of jump thing some where may loan and about even the dependent payoffs everything is headed. trickiest It's to we opinions I be and rate But try differences table think the possible there I'll believed and John,

to there of be, anything going none us to be going it's much, think see but could we're that think I some.

third that just during weak. it also note quarter, was We pretty the

think -- terms of short that of extrapolate very mean, much in little trying but I seen you very time period very of a make it's can't a I it's to pickup, recently, we've far. bit of -- out

around It So stable. I we've the, kind of represents kind here. prognosticating where why of it think of of that's we're mean got probably all kind

Scott McLean

customer on of whatever is I are to know the doing, I just of think that that, extent would particularly think a you in pulling it's when This I historic clients banks back sort And quarters seeing that is yes. X, commitments marketplace. add granular the really base loan size play. and to global necessarily the just that cautious the now we loan of being were their X books the they're about size comment, our compared of growth Scott. where to pulling X, producing to I don't they benefit back more out think not when ago say we I our flatness is of indicative large But, pandemic. Harris's where the right coming and were the and would just

John Pancari

Yes. -- about then could indicated, at execute. or terms indicated And No, Could prepared talk that you I that And just objectives the is longer in if expense than that? you I that taking impacting of in remarks, Paul, what think, got the longer maybe efforts. I rationalization to originally core the upgrade, I has system expense it. you are as Understood. the all lastly, tie know planned any taken into

Paul Burdiss

to Yes, over I'll turn to that. I'll then Scott Harris and supplement start and it

improvement taking when that of I I'm sort expected, would We're The speak So that and speaking about inflation other the But occur kind to quarter. than contracts that, seeing the a quarter. I things. charge to -- across longer what is associated you saw the with in take headwinds. expect in first severance fourth to run us second rate of the in board

just to we hope, the so all of it's continue reality the actively with that. the that environment continue expenses turning working And is And sort corner, isn't as fight today. out we're the tide but I the yet. of expenses, those we're And inflation inflation, to tide we down. dealing But fight

Scott McLean

this other year. that even add just inflation XXXX, seeing in that, little to bit that we're is the the I thing the -- though it's would a softened

think vigorous And contracts, occurred in symptomatic 'XX, their into we've In inflation the seen of the technology most pass-throughs terms bit major of of probably renewing pressure it's going rate fact and kind I last that of things on vendors. technology renewals year those years. extensions a seeing baseline this of year, and the that and we're vendors quite

Harris Simmons

They've and I Disney+, all been watching think. Hulu

Scott McLean

of commented with release, I the that $XX second XX to say go and deposits the we our convert And us after months in the period we a worse on affiliates fully that that, then year, will project, conversion just affiliates. we for of And would our it that our in all way which final years months that core during And by when period, commensurate during about to live works, quarter by just did live $XX because transformation will pilot, a go drop of one impact they our the the get have XX this accounting take with million. the following P&L amount. following million

there's period bit a live in. related issue timing a So little of we're to actually the going

Operator

Our from KBW. McGratty comes with next Chris question

Christopher McGratty

I and from of the here? understand. the Fed the trying XX. fully points would if that increase so reconcile from XX your slide, to done, want to we assumed in XX back costs last of why I you the just deposit big beta comparing the Slide deposit come is -- guess quarter deposit an XX of sure basis additional new if pressure Great. to see beta I'm I'm Paul, could here maybe make to I full-cycle

Paul Burdiss

Yes.

there's So going things X there. on

of of we we of are products that practical But into noninterest-bearing our little an I'm think the lagging of a of expectation that history, recent this will assumption assuming the is up. migration That to repricing what rates. continue is some is sort of there normally interest-bearing. on a of, effect the based can beta, do interest-bearing has as it of Again, better effect float hopeful said, continued another model. bit I than demand there's deposit beta. economic part that that we're this. But As but don't in big sort or

all combined into And so those basis of that things points. XX

Christopher McGratty

mean, under you're asked or the XX% think XXX. opportunity under the growth about cost separately, to beginning I'm threshold. Maybe that budget. XX% Okay. the I interested I about in XXX you're John

of your it's one from million crossing. a $XXX year think I said peers

But the go to to You and costs remix you XXX. about stay have a thinking under. time ultimately how are over

Paul Burdiss

Yes.

So in. we few a start and a SIFI that be we and ago were in and being in the CCAR years all put sort put jump we place. bank with a and management all some to of CCAR Recall, -- in Harris of all I'll continue great place that were things, Scott that's to muscular I invite things and to really those place. still be there mean that with in really compliant risk activity

of close personally don't anywhere foresee to costs. I So million $XXX incremental

pay I -- -- some into that that the for fact, sort portfolio, the edges able the In be to us, expect the AOCI we large numerator. The there I need be that will think we the source attention think rules biggest in changes of sheet, for the we've comply. change we be biggest the source be of that But place today as our effective to gone us. be for risk-weighted of investment us to assets have to the to to. stated, AOCI on have become of previously incorporation things balance think which expect our is will And by short the the I in duration change relatively around those the that largely impact of time we we

Harris Simmons

just I -- very to guess capital. that's respect I I with true think

if put $X.X to go debt about debt into proposed billion think got one requirement place it's up $X And today, I the that of roughly. you would place the requirement. billion the debt we've on us cost about going to

larger spread is wholesale spread asset relative on kind to wholesale, you any the on whatever that either is going other think you on our some that the $X.X the do math, And billion, cost funding, incremental credit to So risk-weighted with I think. times et that home of drag, deposits, credit cetera, that of create source loan, number.

think, So primary that be we'll of I the that, to me, new going hit. is sort thing to

Operator

Securities. King comes of Our line question the from with Brandon Truist next

Brandon King

the and runoff stable So loans XX the for what's with outlook deposit expectation of the over book, securities of next months growth? the

Paul Burdiss

yes, from deposit we away historically have outlook. growth Well, stayed

And over what off the substantial very you've sheet. last is But have next to Deposit see though, of good the very quarters. has particular, do then paid into able X I expect customers last ratio to do as deposits that our expect we the growth of quarters growth deposit be our quarter, think growth the maintain quarter. couple the third conversations the I -- level Zions continue. least with and continued to growth I in seen, been loan-to-deposit wouldn't deposit to over at balance of increased a continue solid expect, in on probably I form deposit

Brandon King

And that, of versus customer there deposits the meaningful is delta Okay. within new customers? between a rate existing

Paul Burdiss

growth third the definitely see higher of increase offering the end has in that at -- seen deposit money deposit rate, of so deposit the that The the new you on been and our interest-bearing rates. Yes. rates from higher on continued sort largely balance that's in quarter sheet in coming we've the coming the

Brandon King

Okay.

that existing and So higher into bringing interest-bearing customers, and it's funds far back shifting more of mix as as accounts.

Scott McLean

clients pricing I of much active much bringing we as active more Scott. deposits say we've what our their have more this we interest-bearing Yes, that in deposits that became -- would back. our is in that seen become is

was had [ money industry we funds the paying. So approximately we deposits more about balance that we in client back It were as aggressive in those continuing on deposits because sheet. as And And that said, just we sheet deposits easy we've got market talk clients liquidity. with conversation. balance we off-balance was billion sheet -- $XX we -- started were about what ] those very off to bringing as to washed

off-balance had what sheet amounts. deposits only institutions but our in bringing in they're they've not had in other bringing other money they meaningful market They're back sweeps,

so wouldn't sheet growth much our I lot the So on come into of customers new come as balance much from say from customers going were that that just have year. has as this a has deposits not existing that it

it. Got

Operator

Thank you.

of the comes Brody line with question next Our Preston from UBS.

Broderick Preston

the asset yield you over you quarter the follow it versus new for that heard X a asset repricing the could next to yields? the back and off are next months? up If I commentary. bit coming wanted loans that basis the was that's what's hoping XX points And to a that? what's just Like to the think over maybe correctly, you us the I book driving earning of say I couple. unpack I origination yield amount positive what fixed on XX said repricing was assumptions little are

Paul Burdiss

-- asked Yes. by simulation And I'm or you that we sheet loans where answer are analyzing going that balance got a than tool note way securities a it. and to differently the note we've sort to our really [ slightly sophisticated of on is yield indiscernible say that put couple the of we the ] that asset earning X what forward next then all results quarters, next is that basis. aggregate. and at We in curve we around. the model the here for of in turn look we those And as see

to rates. resetting So that resets cash that's higher cash. sort of investment then would are the repricing speaking, prevailing to generally loans, longer of And out addition in any portfolio, be, flow now the which investments, of

points those creating accretion of of the course the things basis range the next quarters. an of All are earning of over yield in to the XX X couple in of assets combined

Broderick Preston

questions it wanted And of couple credit. a I Understood. I had gears Okay. and bit to more little pointed. then was generic a to switch

the wanted those what you those nonperforming national assets, you'd what I And suburban was to were on credits? they portion lead what to tell portfolio and it also ask of hoping X the that, increased you then on? drove geographies Just And due us wanted and called could ask $XX nonperforming. was I loans. I out office were what of loan to million, shared to in

Derek Steward

This is Derek.

question just me value-add California, start fast part And office California. Southern were for. the the to leasing retenant as the X in were with able hoping in loans let properties they first question actually rollover of the they -- weren't they sponsor the issues, with So actually and second where had as or lease was

Broderick Preston

Do it. Credit data? Got Shared you have National the

Paul Burdiss

XX%. ballpark total on the think SNC, portfolio. on credits loan you number on sort of in that. XX% don't is national sort Derek, the But the SNCs, think nonagents in shared of have of the deal I mind, And our the in portion I of range if versus don't that's agents I to portfolio of

Scott McLean

terms -- has the balanced XX% a we're in others. XX% then about for to very portfolio in. over the The of well stakes Yes. XX% were We diverse. rest agent It's in portfolio. we of also It's the And what us participant and of very participate -- a performed years.

Broderick Preston

Okay.

Just to that XX% clarify, the was XX% of XX% to you agent? to it portfolio SNC. is of XX% And

Scott McLean

Yes.

Broderick Preston

just the I office those if of could of And Okay. retenanting on more, loans... one some just sneak

Scott McLean

too footprint agent customers those range And of understand the to not to XX% ancillary where need almost not we these They're you thing in business. that in transactions. other XX% have is the cases, are of we in all the out of our footprint. somewhere are in Yes,

outside not in clients these So of markets. we markets. are our our paper is know This buying that

Broderick Preston

That's kind just ratio caused service the those helpful the one that? below of go Could I last Great. re-tenanting debt anything ask process loans retenanting, the like on color. like slow one Okay. to with coverage X office or did

Scott McLean

It did. Yes.

Broderick Preston

appreciate I Okay. it.

Operator

at turn over would to closing Thank back the you. There are no time. floor to further management I this comments. questions like for

Shannon Drage

Thank to you today. for and thank you, all us joining Alicia,

for you If contact Zions forward months. number or please look on Thank your call. us you Bank on you our the additional interest the connecting throughout coming to have website. questions, concludes We phone Corporation. in listed our with This e-mail

Operator

This concludes today's teleconference.

lines You your participation. this at time. Thank for may your you disconnect

Zions Bancorporation, National Association (ZION) 18 Oct 232023 Q3 Earnings call transcript