Zions Shares Decline as Deposit, Borrowing Costs Soar Tenfold

Zions Bancorp slumped after the regional lender reported soaring deposit costs, as elevated interest rates force banks to pay up for customer funds.

The Salt Lake City-based lender said the cost of total deposits and borrowings soared ten fold in the third quarter to 2.1%, compared with 0.22% for the same period a year earlier. That was up 22 basis points from the second quarter alone as reciprocal deposits, which are often more costly than those gathered through typical checking accounts, doubled to $6 billion.