Zions Bancorporation NA Q4 2024 Earnings Call Summary

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

Question: Manan Gosalia - Morgan Stanley & Co LLC - Analyst : It looks like deposit betas on a spot basis are running close to 60% already. Can you talk about how you expect that to progress from here? I'm assuming there is still some benefit that's going to come with a lag. But at the same time, there's fewer rate cuts in the forward curve, which might have that much more you can do, so if you can just run through some of that?

Question: Manan Gosalia - Morgan Stanley & Co LLC - Analyst : Got it. And for my follow-up, do you have your CET1 ratio is including AOCI for the quarter? And is that something you need to manage to, especially given the volatility that we're seeing in the long end of the curve?

Question: Manan Gosalia - Morgan Stanley & Co LLC - Analyst : So is it fair to say that if there is more volatility in the long end of the curve, that it would only really impact when you think about buybacks as opposed to impacting how you grow your loan book?

Question: Manan Gosalia - Morgan Stanley & Co LLC - Analyst : Great. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 21, 2025 / 10:30PM, ZION.OQ - Q4 2024 Zions Bancorporation NA Earnings Call

Question: Bernard Von Gizycki - Deutsche Bank - Analyst : Okay, guys, good evening. I just wonder if you could just unpack a little bit more about the rate sensitivity, the model net interest income that you have from page 13. The implied path of the 6.8% versus the 1.4% at September 30, obviously, the difference in the Fed fund. And then the big increase in the deposit beta from 58% from 36%. Just wonder if you could just walk through any of the assumptions that kind of update the previous quarter?

Question: Bernard Von Gizycki - Deutsche Bank - Analyst : Great. And then I know you guys have talked in the past about getting the NIM back to mid-3%. Just based on like the model assumptions here, I think that's been discussed over a couple of years, just any idea is that something to think about for '26? Anything you can kind of give us for timing any expectations on how we should think about that like kind of longer term NIM outlook?

Question: Bernard Von Gizycki - Deutsche Bank - Analyst : All right, great. Thanks for taking my questions.

Question: Chris McGratty - Keefe, Bruyette & Woods Ltd - Analyst : Oh, great. Thanks. Ryan, just on the balance sheet, some movement between liquidity and the bond portfolio in the quarter. Could you help us -- within your guide for NII, help on the total earning asset levels? Will you continue to use the bond portfolio as a source funds? How should we be thinking about the earning assets in the next year?

Question: Chris McGratty - Keefe, Bruyette & Woods Ltd - Analyst : Okay. Great. And Harris, any comments about inorganic growth? Obviously, regulatory world is shifting in real time, but any thoughts about -- you have the branch deal that's going to close. Any other thoughts about potential M&A?

Question: Chris McGratty - Keefe, Bruyette & Woods Ltd - Analyst : Thank you very much.

Question: Matthew Clark - Piper Sandler & Co - Analyst : Hey. Good afternoon, everyone. Just first on the C&I credit where you realized some charge-offs. Can you just give us a sense for the type of business that is or was? And kind of what exactly happened there?

Question: Matthew Clark - Piper Sandler & Co - Analyst : Okay. Thank you. And then shifting gears to customer fees, capital markets nicely. Can you give us a sense for the pipeline there? And do you think you can kind of build off that fourth quarter number given the change in environment? Or do you feel like we'll step seasonally?

Question: Matthew Clark - Piper Sandler & Co - Analyst : Great. Thanks for the color.

Question: Christopher Spahr - Wells Fargo & Co - Analyst : This question is kind of related to the -- just obviously, the election and post election and just the kind of the change in beta -- and I see this as a big pop in energy, oil and gas growth, slide 24, assuming you compare to the prior quarter. Just is there -- how much do you think that is -- might be election related? Is there more momentum to that? And what other might growth -- commercial loan (technical difficulty) -- like it should be a little bit higher than moderate for the year?

Question: Christopher Spahr - Wells Fargo & Co - Analyst : And then for my follow-up, this is for Harris. So Harris, you spent some time talking about regulation in the 2023 inept -- import calling out Basel III in that long-term debt proposal, I mean, obviously, you kind of talked about just now, but what other areas of we'll call it, just come to come approach do you might benefit banks your size? Thank you.

Question: Christopher Spahr - Wells Fargo & Co - Analyst : Thank you.

Question: Anthony Elian - JPMorgan Chase & Co - Analyst : Hi, everyone. For your loan growth guide of slightly increasing, is that more half-weighted in 2025? Or do you expect the level of loan growth you've seen in the past couple of quarters to continue in the first half of this year?

Question: Anthony Elian - JPMorgan Chase & Co - Analyst : Thank you. And then for my follow-up, can you just provide more color on the increase in classified loans? I know you called out multifamily, industrial and office. But was that broad-based across your footprint? And any large credits that drove the increase this quarter? Thank you.

Question: Anthony Elian - JPMorgan Chase & Co - Analyst : Thank you.