Zions Bancorporation NA at RBC Capital Markets Financial Institutions Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Yes, yes. Good, good. Don't want to talk too much about the economy, but anything to note in your -- in terms of your footprint? It seems like we've had a few other banks up here that their footprint seemed strong, but just little bit of time on how you feel about this.

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Good.

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : So far so good, though, coming out of the fourth quarter into the first, it's continued.

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Yes, good. I like mid-single-digit better than slightly moderately, stuff like that. I always -- in the heart of earnings session it's hard to figure out what slightly to moderately means. So...

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst :

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : And we'll get into deposits, but anything on pricing, any differential on pricing between as you kind of look small, medium and larger credits?

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Some of your peers have talked about some easing pressure on deposit pricing? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MARCH 13, 2019 / 5:20PM, ZION.OQ - Zions Bancorporation NA at RBC Capital Markets Financial Institutions Conference

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Easing pressure.

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Yes, you really haven't had (multiple speakers).

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Okay.

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Okay. I want to touch on the margin in a second, but just the asset pricing side, the loan pricing side. Is it any more or less competitive or you didn't (multiple speakers)?

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : And I wanted to ask about that, I had it in one of my notes. But the benefits of residential, I think we maybe all talk about just pricing sort of on...

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Longer term impact on the efficiency ratio potentially by adding some of the residential to the portfolio?

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Okay. Can you give us an update on the securities portfolio, what's happening there? I mean, it feels like you have the opportunity to raise yields over time, you could do it immediately with one transaction or a couple of transactions. How are you thinking about the management of that going forward? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MARCH 13, 2019 / 5:20PM, ZION.OQ - Zions Bancorporation NA at RBC Capital Markets Financial Institutions Conference

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Okay. Good. This is dTja vu. We're going to go back to 3 years ago.

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Where we talked about are you asset-sensitive or not asset-sensitive. And we kind of have this -- some tailwinds in the securities portfolio, decent deposit, pricing performance, maybe a little bit of a tailwind on yields. And you're talking about still maybe putting in some protection for potentially lower rates.

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Talk a little bit about that, talk about the decision process behind that. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MARCH 13, 2019 / 5:20PM, ZION.OQ - Zions Bancorporation NA at RBC Capital Markets Financial Institutions Conference

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : It seems like for years, you've been trying to become a little bit less asset-sensitive, and we're still at it.

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Yes.

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : And what is the plan? How significant? What is the cost?

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Okay. Anybody -- okay. Good. I want to talk a little bit about the monumental herculean project of the systems?

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Well, see -- and yes, the core system conversion. I know you kind of have 3 phases that you guys talk about.

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : I hope it comes out the right way, but the payoff? It's expensive, the payoff, are we done in 2020? Is there stuff to do before -- after that?

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : But we should get some easing in the expense pressure in 2020?

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Okay. And the positive PPNR goal, it's almost become sacred at Zions?

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Very important. How is that?

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Where are the levers if the revenue growth doesn't come through? I mean, how committed and how committed are you to that? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MARCH 13, 2019 / 5:20PM, ZION.OQ - Zions Bancorporation NA at RBC Capital Markets Financial Institutions Conference

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : More like a hammer.

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : I do you want to touch on M&A and capital, but if -- anybody have questions they want to pose? Okay.

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : And you've talked peer plus (multiple speakers).

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : And the plan is still to do this quarterly board declaration?

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Okay. Have you found the right MOE partner, because we all seem to be able to pair people up, but big picture? Let's talk a little bit about MOEs and a little bit about longer term...

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Yes, I do.

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Okay. Longer term, still the same view that you can be a consolidator in the West? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MARCH 13, 2019 / 5:20PM, ZION.OQ - Zions Bancorporation NA at RBC Capital Markets Financial Institutions Conference

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Okay. Last chance. Any other final points you want to make? James, anything we need to clean up?

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Nobody wants to talk about it, but...

Question: Jon Glenn Arfstrom - RBC Capital Markets, LLC, Research Division - Analyst : Okay. Good. All right. Thanks, guys, for being here. I appreciate it.