Zions Bancorp (NASDAQ:ZION) shares were up more than 3% Tuesday afternoon despite the company’s reported Q3 results, with EPS of $1.40 coming in worse than the Street estimate of $1.56.

Core bank results were solid with favorable spread revenue dynamics despite a moderate decline in deposit balances. Net interest income grew 11.8% sequentially to $663 million reflecting the rate environment as the margin increased 37 bps sequentially to 3.24%.

Management maintained its 12-month outlook and continued to suggest growth across most categories, including moderately higher loan balances, rising latent and emergent asset sensitivity driving higher net interest income, and slightly increasing customer-related fees.

Meanwhile, adjusted expenses are expected to increase moderately due to inflationary pressures and the build-out of the company’s capital markets business.