Zions Bancorporation (NasdaqGS:ZION) Conference Transcript

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]