Zions Bancorporation, National Association (ZION) Q3 2022 Earnings Call Transcript

Zions Bancorporation, National Association (NASDAQ:ZION) Q3 2022 Earnings Conference Call October 24, 2022 5:30 PM ET

Company Participants

Ryan Richards - Corporate Controller

Harris Simmons - Chairman and CEO

Paul Burdiss - CFO

Scott McLean - President and COO

Keith Maio - Chief Risk Officer

Michael Morris - Chief Credit Officer

Conference Call Participants

John Pancari - Evercore ISI

Ebrahim Poonawala - Bank of America

Dave Rochester - Compass Point

Ken Usdin - Jefferies

Brad Milsaps - Piper Sandler

Jennifer Demba - Truist Securities

Chris McGratty - KBW

Operator

Greetings. Welcome to Zions Bancorp Third Quarter Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to Ryan Richards, Corporate Controller. Thank you. You may begin.

Ryan Richards

Thank you, Sherry, and good evening. We welcome you to this conference call to discuss our 2022 third quarter earnings. My name is Ryan Richards, and I'm the Corporate Controller. We would like to excuse James Abbott on the call today as he attends to some family business.

I would like to remind you that during this call, we will be making forward-looking statements, although actual results may differ materially. We encourage you to review the disclaimer in the press release or the slide deck on Slide 2, dealing with forward-looking information and the presentation of non-GAAP measures, which applies equally to statements made during this call. A copy of the earnings release as well as the slide deck are available at zionsbancorporation.com.

For our agenda today, Chairman and Chief Executive Officer, Harris Simmons, will provide opening remarks, followed by a brief review of our financial results by Paul Burdiss, our Chief Financial Officer. With us also today are Scott McLean, President and Chief Operating Officer; Keith Maio, Chief Risk Officer; and Michael Morris, Chief Credit Officer. After our prepared remarks, we will hold a 30-minute question-and-answer session. During Q&A, we request that you limit your questions to one primary and one follow-up question to enable other participants to ask questions.

I will now turn the time over to Harris Simmons.

Harris Simmons

Thank you very much, Ryan, and thank you, and welcome to all of you to our call.

Beginning on Slide 3. We've laid out some themes that are particularly applicable designs in recent quarters as well as those that are likely to be prominent over the near-term horizon. First, as Paul will discuss in greater detail, our asset-sensitive balance sheet is benefiting from rising rates, and we're seeing that in our net interest income. As you know, the futures market is pricing in a Fed fund's upper target rate about 5% by the spring of '23 or an increase of about 175 basis points. Our funding costs during the quarter increased modestly. However, it remains among the lowest of banks within our peer group.