Zions Bancorporation NA at Barclays Global Financial Services Conference Transcript

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

Question: Jason Goldberg - Barclays - Analyst : Helpful. Maybe we do put the first ARS question, which I was asking this for all the companies. Loan demand it certainly feels like it's been relatively soft, at least from some of the commentary thus far. Just any thoughts to what you're seeing. And what you think maybe needs to happen to accelerate that is at lower rates? Is it getting to the election? Is it a confirmation that we can actually achieve a soft landing here? Just any more color you could provide. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 4:00PM, ZION.OQ - Zions Bancorporation NA at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays - Analyst : Got it. And maybe we'll go to the next ARS question and just maybe shift to the other side of the balance sheet with respect to deposits. In terms of maybe just cool, what you're seeing, we've seen sluggish deposits throughout the industry, a shift out of the interest-bearing into -- sorry, at a noninterest-bearing, interest-bearing deposit costs have been going up at a slowing pace. Just maybe any context you could provide there?

Question: Jason Goldberg - Barclays - Analyst : And when you think about maybe loans and deposits together, you have run the separate brands across each of the main regions. Any noticeable differences I mean the loan growth, deposit growth with a different segment if you look at it? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 4:00PM, ZION.OQ - Zions Bancorporation NA at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays - Analyst : Helpful. And maybe tying the two together from a net interest income, net interest margin expansion. You guys -- I guess, your net interest income appears to have troughed in the fourth quarter because one of the few banks that have growth in both the first and second quarters of this year as the NIM trended higher. When you talk to how you see that playing out, we've had some banks got up near-term manages (inaudible) some guys -- banks guide down, some banks more optimistic on next year, some banks less optimistic. Can we just talk to how you think about managing the balance sheet in this evolving rate backdrop?

Question: Jason Goldberg - Barclays - Analyst : Great. We've got the next ARS question. I guess you talked to the latent versus emerging asset sensitivity. It seems like latent is a benefit and emerging is a drag a future impact of rates. I mean, I guess, how confident are you that you will capture the that latent asset sensitivity as a way to lock that in?

Question: Jason Goldberg - Barclays - Analyst : Got it. The room seems to think you have some upside as well. Maybe shifting gears to the fee income side. I feel like that's something you've always been trying to grow as a proportion of revenue. Just maybe talk to where you are on that capital market seems to be more of a focus of late and just what you're doing to move the revenues.

Question: Jason Goldberg - Barclays - Analyst : And then maybe on the expense side, Zions has been running in the mid-60%s type efficiency ratio. I guess where do you see the company running longer term? I know last year, you announced more of expense program to some severance charges. Just where are you with respect to the cost base?

Question: Jason Goldberg - Barclays - Analyst : You referenced the future core transition being completed in July. Maybe just -- I'm not sure everyone in the room is familiar with what that allows you to do maybe talk to what other banks -- I mean, how many banks have actually made that journey? Or where is the industry -- that journey is really helpful as well?

Question: Jason Goldberg - Barclays - Analyst : Helpful. And then is there -- we're going to quantify maybe an expense or revenue impact?

Question: Jason Goldberg - Barclays - Analyst : And I guess, obviously, FutureCore is a big focus now that that's done. Are there other areas of investment you now have the ability to focus on that maybe you didn't get much attention to in the past?

Question: Jason Goldberg - Barclays - Analyst : Got it. And maybe we will put up the next ARS question as we shift to credit quality. I guess, looking at second quarter results, criticized assets increased on multifamily, classified increase to a bunch of different pockets of C&I. Maybe just talk to where we are.

Question: Jason Goldberg - Barclays - Analyst : So -- all right. So maybe upper pressure to criticized and classified, but NPAs not much movement. And I mean, charge-offs, I know they increased six basis points last quarter, but to an industry low 10 basis points, and you feel like credit still remains benign?

Question: Jason Goldberg - Barclays - Analyst : I mean one of the things we had bank yesterday said he thought we were in the first inning of this office cycle. And look, you have $1.9 billion in office exposure. Your reserve is 3.8%. So that's well below some of your peers, which some people could say is a bad thing. Others could say, well, maybe it's a better quality portfolio. Maybe you can maybe talk to what differentiates your office exposure needs to be maybe some of these other banks? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 4:00PM, ZION.OQ - Zions Bancorporation NA at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays - Analyst : Got it. And maybe on capital I know maybe -- I guess last year we were here, very large unrealized losses and you're telling people don't worry, it's going to come back. And I think this quarter, we'll probably see a big pull to par or as a portion of that given the rate backdrop has changed. Just how are you thinking about capital in the current environment? Obviously, you're not subject to whatever the boggle things happens, if it happens -- but just how you think about top of capital...

Question: Jason Goldberg - Barclays - Analyst : Got it. You're one of the -- at least a few banks look closely at that opted not to monetize your Visa shares.

Question: Jason Goldberg - Barclays - Analyst : In the most recent tender, talk to why it could have been a sizable capital gain.

Question: Jason Goldberg - Barclays - Analyst : That's fair. Maybe put the next ARS question. You touched on it crossing the $100 billion marker in the next couple of years. Is there a big cost associated with that, policies, procedures. I know you were a CCAR bank back in the day, is there a lot of heavy lifting that needs to be done in front of that?

Question: Jason Goldberg - Barclays - Analyst : Got it. I know I got to try. But as we sit here, any thoughts on the current quarter or any thoughts you give us a 12-month ahead outlook? Any changes just based on the evolving interest rate backdrop and the like?

Question: Jason Goldberg - Barclays - Analyst : Great. And on that note, please join me in thanking Harris for his time today.