Zions Bancorporation NA at RBC Capital Markets Global Financial Institutions Conference Summary

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

Question: Jon Arfstrom - RBC Capital Markets - Analyst : <_ALACRA_META_ABSTRACT>Good. And I've said this in other sessions, it's up quite a bit. We have a lot more generalists and most people know Zions but give us an overview of Zions and the markets you're in and how you go to market?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. Great. And like all sessions, we're open for questions. So if you have a question, put your hand up and we'll get you a microphone. A lot of different geographies that you walked through. I don't know how to best tackle it, but how are you feeling about the economy overall. I mean maybe today is a bad day to ask about that, but it feels like things are going well for you based on recent commentary. But how do you feel about the economy and lens...

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Interesting. Okay. And I guess it's not new. The tariff talk isn't new. Maybe it's more acute today, but it's been around for a while.

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. And your loan growth expectations, you've called for slightly increasing loan growth for the year help define that for us and then maybe the sources of that from what you see today?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : I mean your geographies feel pretty healthy. I was in we're talking about in Texas last week. It's incredible. But you feel like the economies are generally...

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. Good. In terms of net interest income, you've talked about moderately increasing that suggests some lift in the margin. You've had a good sequential quarterly run of margin expansion several quarters. Talk a little bit about some of the margin expectations and what's driving that expansion, and you expect that to continue?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : You're checking some questions of my deposits a little below 60% in the fourth quarter. How do you think that plays out in 2025?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Yeah. Okay. So it feels pretty good from a net interest income outlook point of view.

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. Good. Plenty of directions we could go here, but just on expenses slight to moderately increasing. Maybe talk about the toggle between slight to moderate and then the $100 billion in asset threshold is, if you're right there, how do you think about that? How expensive is it? How do you, what kind of method do you want to send around going over $100 billion?

Question: Jon Arfstrom - RBC Capital Markets - Analyst : So it sets up well. It's a good positive operating leverage setup for you is what it feels like. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 9:00PM, ZION.OQ - Zions Bancorporation NA at RBC Capital Markets Global Financial Institutions Conference

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. A couple of minutes left. Last topic maybe is credit. There's been a little bit of credit migration. It hasn't really pulled through to losses, but some fierce talk a little bit about that. And that's said and I'll make it quick and left that for the last question because it's been on everybody's mind and it should be, it's appropriate. But we've seen an increase in classifieds over the last 18 months. The first part of that was office loans coming out of our office portfolio are pretty understandable. In the third and fourth quarter, we saw another uptick in about 2/3 of it was related to multifamily and industrial, and then the other 1/3 was kind of broader stuff. But you didn't see an increase in nonperforming. Non-performing are pretty much flat. And so special mention and classified and are going up, but nonperformance are pretty flat. Some of this has been a result of kind of an industry shift in grading how we grade loans, the protocol for that. And that added some to the all banks in the country kind of went through this in the second half of the year. And I think it's a pretty well understood story. And we did, and it produced more of these classified loans. But nonperforming didn't go and our charge-offs over the last 2 years in real estate have been really low, pretty negligible. So when you think about higher interest rates after 2022, we went through '23, '24 real estate challenges, higher interest rates and our net charge-offs have been really low. So I think what we've said is we think our classifieds we don't go out on limb very often, but we think they will peak in the first or second quarter of this year, maybe third, we said it over their term. and we feel pretty confident about that. And we don't necessarily see a spike in net charge-offs. It feels like the rate of growth is potentially slowing.

Question: Jon Arfstrom - RBC Capital Markets - Analyst : Okay. Well, that's it for the time. Thank you, Scott, for being here.