Zions Bancorporation (ZION) Q2 2020 Earnings Call Transcript
We welcome you to this conference call to discuss our 2020 second quarter earnings. For our agenda today, Harris Simmons, Chairman and Chief Executive Officer, will provide a brief overview of key strategic and financial performance; after which Ed Schreiber, Our Chief Risk Officer, will review the condition of the loan portfolio, the allowance for credit loss and the way in which we are engaging with our customers during this period of economic disruption. To help put the recession in perspective, we've included the average of those same credit ratios in global financial crisis 2008 to 2009 and during the oil and gas downturn 2015-'16, noted in the tax, loans on federal status reached 8.5% of loans, excluding PPP loans. The stability of the other loans, which again represents 86% of the total non-PPP loan portfolio is encouraging. Keep note of the strong growth in residential mortgage fees this year while areas of weakness included retail fees largely due to waves of non-sufficient fund fees as we work to support our customers in this difficult environment and declines in card-related revenue and loan syndication fees due to reduced business activity. While activity appear to improve as we approach the end of the second quarter, the economic environment remains too uncertain to predict stabilization in these trends. As shown on Slide 18, the decline in non-interest expense reflects our ongoing efforts to reduce expenses and streamline operations. As previously disclosed, reported non-interest expense in the second quarter included non-recurring expenses incurred in conjunction with the termination of our defined benefit pension plan.