Summary of Zions Bancorporation Conference Call (November 06, 2025) Company Overview - **Company**: Zions Bancorporation - **Ticker**: NasdaqGS:ZION - **Assets**: $89 billion - **Headquarters**: Salt Lake City - **Segments**: Includes Zions Bank, Amegy, California Bank & Trust, National Bank of Arizona, Nevada State Bank, Vectra Bank Colorado, and Commerce Bank of Washington - **Profitability Metrics**: - ROTCE: Mid-teens - Non-interest bearing deposits: 24% - Fee revenues: 22% - **Valuation**: 8 times 2026 earnings and 1/3 of tangible book value [1][1][1] Core Business Focus - **Small Business Lending**: - Focus on small middle market customers remains strong - Recent progress in SBA loan products, moving up to 14th in league tables - Emphasis on building loyalty through long-term relationships with small businesses [12][12][12][15][15] Market Opportunities - **Geographic Focus**: - Growth observed in Texas (Amegy affiliate), California, Utah, Idaho, and Wyoming - Positive outlook for loan growth despite recent declines in period-end loans [17][18][22] Economic Environment - **Customer Confidence**: - Customers are stable, with indications of rebuilding inventories - Concerns remain regarding tariffs, inflation, and employment [24][25] Deposit Strategy - **Brokered Deposits**: - Successful reduction of brokered deposits, with a focus on core deposit growth - Introduction of a feature-rich demand deposit product aimed at enhancing consumer offerings [28][30][31] Non-Interest Income and Margin - **NIM Target**: - Aiming for a mid-threes NIM, with recent expansion noted over seven consecutive quarters - Factors contributing to NIM improvement include managed deposit costs and remixing earning assets [42][43][46] Capital Management - **CET1 Ratio**: - Focus on CET1 as a binding constraint for returning capital, with a target to align with peers in approximately 12 months - Emphasis on maintaining ample capital to withstand stress losses [52][55] Competitive Landscape - **Market Competition**: - Strong competition in Texas and other fast-growing markets - Zions aims to serve clients seeking community bank services amidst M&A activity in the region [58][60] M&A Strategy - **Acquisition Focus**: - Open to strategic acquisitions that enhance footprint and deposit franchises - Preference for tuck-in deals rather than large-scale mergers [62][64] Credit Quality - **Charge-Off Incident**: - Recent charge-off of a $60 million NDFI loan, with proactive measures taken to reserve for potential losses - Ongoing review of lending practices to ensure best practices are followed [72][73][75] Conclusion - **Future Outlook**: - Zions Bancorporation is positioned for growth with a focus on small business lending, deposit strategy, and maintaining strong capital ratios while navigating a competitive landscape and economic uncertainties [1][1][1]