Q3 2022 Zions Bancorporation NA Earnings Call
Greetings and welcome to the Zions Bancorp third quarter earnings Conference call. At this time, all participants are in a listen only mode.
Question and answer session will follow the formal presentation, if anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded I will now turn the conference over to Ryan Richards Corporate controller. Thank you you may begin.
Thank you Sherry and good evening.
We welcome you to this conference call to discuss our 2022 third quarter earnings.
Name is Ryan Richards and I'm, the corporate controller, we would like to excuse James address on the call today as he attempts of some family business.
I'd 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 two 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 Zions Bancorporation Dot com.
For our agenda today, Chairman and Chief Executive Officer, Harry Simmons, who will provide opening remarks, followed by a brief review of our financial results by Paul <unk>, Our Chief Financial Officer with US also today are Scott Mclean, President and Chief operating Officer, Keith <unk>, 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.
Thank you very much Brian and thank you and welcome to all of you to our call.
Beginning on slide three.
We've laid out some themes that are particularly applicable to zions in recent quarters as well as those that are likely to be permanent over the near term horizon.
First as Paul will discuss.
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 funds upper target rate of about 5% for the spring of 'twenty, three or an increase of about 175.
Basis points.
Our funding cost during the quarter increased modestly.
However, it remains among the lowest of banks within our peer group.
As rates have risen and downside risk increases we've been moderating our asset sensitivity, primarily through swaps, allowing their highly rate sensitive deposits to attrit.
Exclusive of PPP period end loans increased $1 8 billion.
Or three 4% on annualized during the quarter.
We've achieved strong loan growth, while maintaining the same underwriting standards that have allowed zions too.
For most of our peers and some important credit metrics over the past decade.
We've restrained growth in categories that can become riskier in a recessionary environment in particular commercial real estate, excluding owner occupied properties.
Less than half the rate of the remainder of our portfolio over the past five years at a rate much slower than that of our peers.
Although loan growth has been stronger than we expected over the last several quarters, we believe the effects of higher rates and likely a slowing economy will slow portfolio growth over the next few quarters.
The next theme is balance sheet flexibility during the pandemic, we experienced somewhat greater deposit growth in most of our peers in the industry in general.
We positioned the balance sheet to manage the eventual outflow of the surge deposits.
We have a low loan to deposit ratio was 71%, whereas prior to the pandemic, we are running in the 85% to 90% range.
Our securities portfolio has been structured to provide a more predictable rate of cash flow than simple 30 year mortgage backed pass through securities.
And that cash flow was used this quarter to fund a substantial portion of our loan growth.
Exiting the pandemic, our strong liquidity position that allowed us the luxury of being able to prioritize the quality of deposits over quantity and this is reflected in our total cost of deposits, which.
At 10 basis points. This quarter is among the very best of our peers.
We believe we are well positioned.
Well.
Baird and positioned for any recession that may materialize with stronger pre provision net revenue as a result of higher interest rates and capital that is strong relative to the risk profile of our balance sheet, particularly.
Particularly given the fact that much of our loan growth in recent years has been concentrated in loan types that are less prone to loss.
Turning to slide four.
We're generally pleased with the quarterly financial results, which are summarized on this slide.
Circles, there, you'll see that adjusted taxable equivalent to taxable equivalent revenue net of interest expense.
Increased about 9% relative to the prior quarter and.
Excluding PPP income the increase was about 10%.
Adjusted pre provision net revenue increased 17%.
Excluding PPP it was 21% increase.
Those growth rates are not annualized.
Credit metrics are quite clean.
As previously noted loan growth was strong and adjusted for PPP forgiveness, while deposits and most particularly more rate sensitive deposits attributable to very large relationships experienced some additional attrition.
Moving to slide five diluted earnings per share was $1 40.
<unk>.
Comparing the third quarter to the second quarter. The single most significant difference was the improvement in revenue driven by the effect of interest rate changes on earning assets and continued strong performance from customer related noninterest income.
The provision for credit loss contributed a <unk> <unk> per share negative variance as can be seen on the bottom left chart as we added to loss reserve reflects the increased probability.
Of an economic slowdown.
Interest income from PPP loans is now a much less significant contributor at <unk> <unk> per share down from <unk> <unk> per share in the second quarter.
Other items that affected earnings per share are noted on the right side of the page.
Turning to slide six our third quarter adjusted pre provision net revenue was $351 million.
The adjustments, which most notably eliminate the gain or loss on securities are shown in the later pages of the press release and this slide deck.
Within the PPR chart, the top portion of each column denotes the revenue we've received from PPP loans net of direct external professional services expense.
These loans contributed only $6 million to <unk> in the second quarter.
Exclusive of PPP income.
We experienced an increase in adjusted <unk> of 53% over the year ago period.
With that high level overview, I'm going to ask Paul <unk>, our chief financial officer to provide additional detail related to our financial performance.
Thank you Harris and good evening, everyone I'll begin on slide seven a significant highlight for US this quarter was the strong performance and average loan growth.
Average non PPP loans increased $1 5 billion or two 9% when compared to the second quarter areas of strength included commercial and industrial residential mortgage and both commercial and consumer construction as can be seen in the appendix on slide 30.
Yield on average loans increased 50 basis points from the prior quarter, which is primarily attributable to increases in interest rates average PPP loans declined 393 million to $408 million.
Excluding PPP loans, the loan yield improved 55 basis points to four 6% from 361%.
Deposit cost increased during the quarter, but remained low shown on the right our cost of deposits rose from three to 10 basis points in the third quarter of cost of total deposits. Our average deposits declined $3 $4 billion or four 2% linked quarter for.
For deeper insight into deposit volume changes, please turn to slide eight where we breakdown our deposits by size.
As shown here the majority of our deposits come from relationships holding less than $10 million on our balance sheet digging deeper into deposit run off you can see on this chart that the.
2022 decline in deposits has come from large balanced low activity accounts.
In our experience. These deposits are the most rate sensitive therefore, the faster than expected increase in rates and the widening differential in our deposit rates paid when compared to other investment products has created an incentive for some of these large less operationally active dollars to move off of our balance sheet where <unk>.
Hospital, we are actively manage these funds into off balance sheet products, maintaining the relationship with the customer while keeping deposit costs well managed contrary to the trends in large balance deposits deposit relationships with clients holding under $10 million with us.
Has generally been stable since the beginning of the year combined with the third quarter's loan growth our loan to deposit ratio remains a very comfortable 71%, which is still about 15 basis points below the level just prior to the pandemic.
Moving to slide nine we show our securities and money market investment portfolios over the last five quarters. The size of the securities portfolio declined by $2 billion over the previous quarter, driven by an adjustment to the fair value no new security purchases and repayments of about $900 million.
Nation of Securities and money market investments is now 34% of total earning assets at period end, which remains above our pre pandemic average of 26% excluding fair value marks we anticipate that money market and investment securities balances combined will continue to decline over the near term.
Our revenue is primarily balance sheet, driven this quarter, 80% of our revenue.
Comes from net interest income.
<unk> 10 is an overview of net interest income and the net interest margin. The chart on the left shows the recent five quarter trend for both <unk>.
Net interest income on the bars reflects both loan growth and higher interest rates, while the net interest margin in the white boxes also reflects a remixing of earning assets in the last two quarters toward higher yielding assets, we attempt to quantify the impact of these trends on the net interest margin.
On the right hand side of that page.
Slide 11 provides information about our interest rate sensitivity due to the rapidly changing environment recall that last quarter. We introduced the terms latent interest rate sensitivity and emergent interest rate sensitivity regarding lease interest sensitivity rate changes that were in place as of September 30th will work through our balance sheet.
<unk> income statement over the near term and should add approximately 10% to our net interest income in the third quarter of 2023, when compared to the third quarter of 2020 to.
Regarding emergent sensitivity if the forward path of interest rates were to materialize, we would expect an additional 3% in net interest income in the third quarter of 2023, when compared to the third quarter of 2022. In addition to the 10% increase from latent sensitivity. The forward path is defined as the forward yield curve as.
September 30th which at that time included about another 150 basis point increase in the fed funds target rate.
Both method both measures assume that earning assets will remain flat in that non specific maturity deposits will move and repriced in accordance with our interest rate risk modeling assumptions in other words and for example loan growth would be expected to add to net interest income beyond the latent and emergent.
Sensitivity estimates, which consider only changes in interest rates, while the investment portfolio attrition would be expected to narrow these figures.
With respect to our traditional interest rate risk disclosures, our estimated interest rate sensitivity to a 100 basis point parallel interest rate shock has declined by two percentage points from the second quarter and about eight percentage points from the beginning of the year.
This change reflects the recent decline in deposits and increase in our interest rate swaps portfolio and a higher net interest income denominator.
In summary, we expect latent and emergent to interest rate sensitivity combined with continued loan growth and manageable changes and deposit volume and pricing to continue to increase net interest income over the coming year.
Moving onto noninterest income and total revenue on slide 12 customer related noninterest income was $156 million, an increase of 1% over the prior quarter and 3% over the prior year as we noted in July we have modified our non sufficient funds and overdress overdraft fee practices near the beginning of the.
Third quarter, which reduced our noninterest income by about $2 million in the quarter improvement in customer related fee income are fairly broad based and when combined with the changes in revenues associated with our deposit products produces an outlook for customer related noninterest income in the third quarter of 2023 or slightly.
Increasing compared to the current quarter up from the prior quarter's outlook of stable.
The right side.
The slide revenue shows the sum of net interest income and customer related noninterest income revenue grew by 16% from a year ago. When excluding PPP income grew by 26% over the same period.
We expect client activity and the positive impact of higher interest rates to continue to improve this measure over the coming quarters.
Noninterest expense on slide 13 increased 3% from the prior quarter to $479 million salaries and benefits grew by $5 million. The primary drivers include the additional staffing and an extra day in the quarter compared to the second quarter. We continued to feel the impact of inflation, which is showing in smaller but numerous increases.
<unk> in several other expense categories, our outlook for adjusted noninterest expense is to moderately increase by the third quarter of 2023, when compared to the third quarter of 2022.
Another highlight for the quarter was the continued strong credit quality across the loan portfolio as illustrated on slide 14 relative to the prior quarter. We saw continued improvement in our balance of criticized and classified loans net charge offs to average loans for the quarter was 21 basis points of average non PPP.
Loans compared to a loss rate of only seven basis points in the prior quarter credit losses. This quarter could best be described as unique situations, rather than systemic or common theme losses, notably our nonperforming asset ratio and classified loan ratio continued to improve and are at very healthy levels.
Slide 15 details the recent trend in our allowance for credit losses or ACL over the past several quarters at the end of the third quarter. The ACL was $590 million a $44 million increase from the second quarter.
Little over half of the linked quarter ACL increased can be ascribed to the buildup of <unk>.
Serves on existing non PPP loans up from five basis points I'm, sorry up five basis points from the prior quarter to $1 one zero percent.
With the remaining increase attributable to growth in the loan portfolio. Our ACL will continue to reflect the size and composition of our loan portfolio and evolving macroeconomic forecast.
Our loss absorbing capital position as shown on slide 16, we believe that our capital position is aligned with the balance sheet and operating risk of the bank. The CET one ratio fell in the third quarter to nine 6% as strong loan growth outpaced retained earnings we repurchased $50 million of common stock in the third quarter.
As a reminder share repurchase and dividend decisions are made by our board of directors and as such we expect to announce any capital actions for the fourth quarter in conjunction with our regularly scheduled board meeting this coming Friday.
Our goal continues to be that the CET, one capital ratio will remain at or slightly above peer median while managing to a below average risk profile.
Slide 17 summarizes the financial outlook provided over the course of this presentation. As a reminder, this outlook represents our best current estimate for the financial performance in the third quarter of 2023 as compared to the actual resort results reported for the third quarter of 2022 quarters in between are subject to normal.
Seasonality.
This concludes our prepared remarks Sherry would you. Please open the line for questions.
Yes, if you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from thank you.
For participants using speaker equipment may be necessary to pick up the handset before pressing the star keys.
Our first question is from John .
To carry with Evercore ISI. Please proceed.
Hey, John Thanks, John .
On your on the NII outlook.
I guess, Paul if you could just I just want to make sure I understood. It correctly you.
You made a comment that with emergent and considering your merchant and latency sensitivity as well as your balance.
Balance sheet growth expectations that you expect NII to increase in the coming year.
Can you clarify if not you did hear that correctly and specifically.
Ed just due to the effects of latent in emergent sensitivity combined we would expect net interest income in the quarter a year from now to be approximately 13% higher than the current quarter.
Okay, Alright, great. Thank you that helps and then.
In terms of excludes the impact of any of any balance sheet growth loan growth.
Add to that that's correct.
Yes got it okay and then on that.
On the loan growth topic I know you indicated in your prepared remarks, you expect loan growth to slow over the next few quarters could you maybe help us think about.
How we should think about growth in 2023 versus 2022 and in what areas do you see that moderation developing.
Well I'll take a stab at it.
Clearly wonderful family residential originations are slowing we expect that to be down.
Uh huh.
A higher rate environment, I would expect that we're going to see slowing in commercial real estate.
Well, so far we're not we're still seeing pretty.
Healthy activity in terms of commercial loan growth.
Yeah.
Just depending on how.
When the economy slows.
We think that thats going to be the natural outcome is that.
The rate environment that Youll see.
Youll see loan demand.
Yeah, there as well so.
Just a couple of thoughts it's it's it's Directionally I don't think we really have any good fix on it.
Exactly how it plays out John .
John I would just Scott I would just add to that that we're coming off of two or three of the biggest quarters in our history in terms of loan growth.
All in areas that are.
No.
No.
Have been really.
Focal points for our lending.
So.
Sure.
Kris will look like a decrease but it's coming off of sort of record highs.
I would just say also that for years, you've heard us say that we we focus on trying to create mid single digit loan growth and that our model works well on that basis.
Yes.
We would still feel pretty comfortable with that kind of content barring a really serious recession.
Alright, Okay, great. Thanks, Scott.
Okay.
Our next question is from Ebrahim <unk> with Bank of America. Please proceed.
Good afternoon.
I guess, maybe Paul just following up in terms of thinking about.
<unk>.
The NII outlooks to positive cooking to San Diego.
But talk to us in terms of as you think about the project.
<unk> <unk> of NII and NIM as we think about 2000 <unk> do you think it's drifting higher as you think about all.
All of 2003, when do you see that is speaking with any sort of assumptions and what's the dominant beta that youre thinking about that you expect.
Yes, so with respect to the net interest margin I'm going to choose my words really carefully there because there are so many things that go into that including the composition of earning assets. So focusing on net interest income sort of our expectation and modeling would indicate that even with.
An acceleration of deposit betas from where theyre at or as has been noted our deposit all in cost of deposits remains exceptionally low.
So even with a little pickup in deposit rates, we are expecting this latent and emergent overall sensitivity to be really driven by earning asset repricing and.
As such particularly if we combine that with loan growth. We would expect net interest income to continue to improve now our outlook older goes out four quarters through the third quarter of next year.
But I think you can get a pretty good indication of where we think next year will fall.
Based on that based on that outlook of continued growth.
Understood and then just tied to that I think you mentioned, obviously, a fair amount of liquidity whats your expectation in terms of deposit growth and the speed at which some of you saw at your deposits.
<unk> might exit the balance sheet.
Well we.
We don't really use the term surge deposits as a reminder, we do however monitor the operating nature of the deposits on our balance sheet and we measure something called the churn which is the sort of the.
The activity within the accounts and if we look at the lowest churn accounts.
Those have grown from about.
Meeting the most rate sensitive when I say lowest churn sort of the most rate sensitive accounts those have grown from about.
31% pre pandemic too close to 40% at the high watermark those are back down to sort of high <unk> call. It 37% if and this is sort of somewhat speculative comment but in response to your question I will try to provide some insight if those sort of.
More rate sensitive deposits were to fall to the place that they were prior to the pandemic. So that's two years ago.
You would be looking at probably another $5 billion of deposit outflow that would all other things equal that would take our loan to deposit ratio to about 76%, which.
From a profitability and a liquidity perspective is a very comfortable place from my perspective.
Okay. Thank you thank.
Thank you.
Our next question is from Dave Rochester with Compass point. Please proceed.
Hey, good afternoon guys.
Sure.
On the hedging plan from here, where do you guys want to end up on asset sensitivity and we wrap that up using swaps or go about it another way.
Yes. So this is Paul I'll take that.
We have been the Alco Committee began a hedging program earlier this year several quarters ago actually as interest rates start to rise we are trying to protect against the downside. So we remain asset sensitive we will continue to put swaps on.
But the biggest determinant of our asset sensitivity continues to be the behavior of our deposits.
And so my expectation is that that as.
Asset sensitivity will continue to fall a little bit but at the end of the day the behavior of our deposits will ultimately determine whether or not we're not sort of modestly asset sensitive or modestly liability sensitive I think I think we will get a little closer to neutral from here.
But again, it's going to be highly dependent on the behavior of our deposit.
Okay I appreciate that and then just a follow up any concerns about the TCE ratio here. Following the reduction this quarter anything you need to do differently or maybe you are doing differently to perhaps reduce the impact from higher rates on that going forward and there is a level of TCE or TCE ratio impact your decision on buybacks at all.
With respect to buyback I'll take the last question first with respect to the buyback, we really manage to regulatory capital, we manage stress test results relative to the risk in the portfolio.
I would say I believe and I think the organization believes that that TCE ratio does not reflect balance sheet value.
And that is because of the Asa asymmetrical nature of the accounting, which we've talked about previously, but only marking one small part of the balance sheet to market when the rest.
We manage the balance sheet.
In its entirety.
We cannot manage at an individual small components and so.
Because the TCE ratio does not really reflect the balance sheet value.
It's not our highest priority however, all of that being said.
This is kind of a.
Counting related.
Artifact and as such anything we any action, we take to mitigate that.
Would also be probably accounting friendly in nature.
Great. Thanks.
Sure.
Our next question is from Ken Houston with Jefferies. Please proceed.
Thanks, Good afternoon, guys I just wanted to ask on the expense side. So looking on your adjusted basis, you're up 10% year over year.
The call outs about salaries and incentives I'm just wondering can you help us just understand the.
The magnitudes there both sequentially and.
And year over year kind of like where the growth is coming from and as you look forward to another moderate increase yes.
Help us understand like how much of that is the incentive comp for higher corporate earnings versus just hires and inflation any breakout I think would be helpful to understand the magnitude of the expense growth.
Yes so.
<unk>.
Two thirds of our expenses are driven by.
Driven by employees.
No.
Sure.
Some of this is employee benefits some of its in salaries, a little bit of incentive comp.
It is probably not the largest largest part of it so over over time my expectation.
The two largest factors to pay attention to are the total number of employees.
And then the expense inflation.
Inflation pressures, we're feeling overall unexpected.
So all that being said.
We are.
Potentially going into a kind of a slowing environment, but it is important to us that we continue to invest in the businesses, which is why you're continuing to see somewhat modest but.
But some growth in our overall level of employees.
I guess as a follow up it just seems to be a rather high expense growth rate relative to many peer. So are there. Other offsets you can find I know youre going to continue to invest but just in terms of funding some of the increments or is it just you know you have the NII to spend more so this will be the outcome that the companies to do for its future.
One of the things that I would.
Just to add to what Paula said.
One of the places that we've been adding.
Not all.
FTE.
For full time equivalents are created equal and we've been building.
Capital markets business were really starting to ramp that up, particularly with a particular focus on commercial real estate, which over time.
Had more opportunity to do business there than we've had balance sheet to accommodate.
We.
We've had some we've had a variety of hires in that area.
We've been ramping up in cyber security, where we're up.
Staffing.
Costs, they're up about 25% over the last year.
So I mean, there are some pockets of areas like that I don't expect we're going to continue to see that kind of pace of growth in these areas.
And so.
So I think that's going to be helpful going forward, but I also it remains a very competitive.
Environment out there in terms of compensation, particularly for.
Four.
More senior.
People experienced technicians.
People like that so.
That's.
Thats where were thinking going into this next year, it's still we're still seeing a lot of inflation pressure.
And compensation.
And our next question is from Brad Milsap with Piper Sandler. Please proceed.
Hey, good afternoon.
Right.
Just to follow up on Ken's question, I guess expenses had been up the last two quarters, 10% or so you're stuck with kind of moderately increasing nomenclature.
Kind of curious is that still the right kind of level to think about as we look into next year. Just don't go down the path of kind of what moderate means but.
That 10% number does kind of stick out kind of vis vis where that moderate label.
Yes, I think we don't expect to see.
Another 10% year over year as we get out into next year.
I expect it to be on the high side of kind of the mid single digits, but it's.
I wouldn't expect it to be what it has been this past year.
And that.
Paris is comment would be inclusive of the fact that as our future core final release goes live we'll have an increase in costs related to that and that's built into what he's yep.
Okay.
Suggesting.
Thank you that's very helpful and just as my follow up just maybe on asset quality can you guys talk a little bit about kind of where you are sort of helping.
Kind of how you are viewing the world in terms of your model and your economic forecasting just would love to get an update on kind of how you guys are viewing things.
Well.
The.
Has been previously described and I'm sure you've heard our.
Seasonal.
Based allowance for credit loss.
Based on the prevailing credit trends within the portfolio and then the macroeconomic outlook.
Our I think it's fair to say that we are tilting toward a.
Unless moderate I E potentially more severe outcome.
I E. We expect things to deteriorate modestly from where they are at I think thats kind of a key driver of our allowance for credit losses today.
Over time however.
Those macroeconomic forecast will absolutely impact.
The allowance for credit loss at that point in time at the end of the quarter.
Great. Thanks for taking my questions. Thank you.
Our next question is from Jennifer <unk> with <unk> Securities. Please proceed.
Thank you good afternoon.
I'm just curious if I missed this from the monologue I apologize, but can you give us some more detail on the two credits.
That increased your net charge off level during the third quarter.
Yes, I think we have Michael Morris, our Chief Credit Officer, and Mike Michael Do you want to talk about those couple of credits.
Sure sure Harris Hi, Jennifer.
We didn't find really anything thematic.
There are a couple of one offs.
Yeah, and I would say.
If youre going to categorize them you'd probably call them.
$5 million to $10 million range unsecured cash flow type loans in the commercial side.
You could argue there were some loss drivers.
It came out of Covid and supply chain issues.
Both of them.
In different ways, but they're not seeing systemic or thematic.
Split.
Yes.
I mean, specifically one was what 10 and it was about.
Seven I think something like that right right.
Okay.
Thanks, so much.
Yeah.
Our next question is from Chris Mcgratty with <unk>. Please proceed.
Great.
Paul question on the investment portfolio could you remind us.
What type of month.
Monthly cash flow comes off that I think you said you are not buying anything, but just trying to get a sense of where that portfolio will bottom at how much cash flow throw off and also the yields of the stuff that's rolling off compare to your book yields.
I would've thought that the yield went up a little bit more this quarter, but.
Any color there would be great. Thanks.
Yes.
As it relates to the cash flow.
Sent that in.
In terms of quarterly cash flows and the this.
Leo was specifically designed to deal with the possibility of extension risk that is to say the extension risk.
Deliberately limited and so the cash flow coming off the portfolio has been relatively consistent by quarter at about $900 million.
So.
Okay, and then as a follow up could you.
Provide the rate and duration of the borrowings.
You had also I think ebrahim and asked about the full cycle beta is could you just remind us what you're assuming thanks, Keith so as it relates to the.
I think youre asking about funding the duration of the funding remains relatively <unk>.
Short.
We've got generally repos and some other things but.
On the short side.
Is what youre asking.
And because of that you can see the yield is pretty transparent.
Thanks.
On the face of the financial statements.
Okay.
Okay, Great and did you have the full cycle deposit beta that you're assuming Paul sorry.
Sorry, sorry.
That is actually.
I think it was 13% of our slides I need to pull 11% using the late March 14, using kind of an emergent yes.
14% vicinity.
Certainly.
Where it's been and so forth right.
Suggested but have you started drilling there, but did you have you disclosed what youre assuming over the full cycle, obviously its been really low so far.
No. We haven't I think we have not shown that over the full cycle. We think we're only projecting out kind of ex.
Next 12 months given the forward curve I would encourage you to look at the footnote on slide 11 of the earnings presentation, where there is some incremental disclosures around that.
Thank you.
Thank you.
That concludes our question and answer session I would like to turn the conference back over to Ryan for closing comments. Thank.
Thank you Sherry and thank you all for joining US today. If you have additional questions. Please contact us at the email or phone number listed on our website. We look forward to connecting with you throughout the coming months. Thank you for your interest in science Bancorporation. This concludes our call.
Thank you. This concludes the conference you may disconnect your lines at this time and thank you for your participation.
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