ZION - Earnings call transcript Q4 2024 | Zions Bancorporation, National Association

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Operator

Greetings, and welcome to the Zions Bancorp Q4 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would like to introduce your host, Shannon Drage. Thank you.

You may begin.

Shannon Drage

good and Matt, you, evening. Thank to We our call discuss conference fourth welcome quarter you XXXX and to earnings. this full year My Director Senior Shannon Relations. is of name Investor Drage,

we remind results call. of with available actual statements differ Slide in materially. the to during I non-GAAP the statements, dealing you may presentation, you this encourage copy measures, made the forward-looking to like making forward-looking applies to this equally would X call, presentation review will We the earnings of press be the the information although presentation or which as during that disclaimer release at A of well and as release zionsbancorporation.com. are

provide opening agenda remarks. Executive our For Chairman will and today, Chief Simmons, Officer, Harris

Ryan Officer; Officer, financial Financial Chief comments, Chris Harris' scheduled session. and will today Scott This Chief for Credit our call Also is Risk results. After will Operating prepared hour. McLean, Richards, Chief and question-and-answer our Chief Steward, are remarks, a President us X we with our hold Kyriakakis, Officer. Derek review Officer; Following

I over Simmons. to will turn now the time Harris

Harris Simmons

in acknowledging Thanks devastating to start by Shannon, I'd wildfires, everyone. like continue very our this call which so and much, off month earlier many people. good evening, Southern started and impact California the to

assist or working back families. to people continues the organizations who among be loss for their there so and our to them been charitable We've feet. on on we're in reported their property protect many and to And focus customers fortunate injuries Our been the responders of safety well-being are getting our and colleagues, and first grateful have people. no

to a of related anticipated we insurance to credit in from anticipate limited losses be we due the or credit impacts residential amount relates very damage any minimal. burn wildfires, to zones, to in it place, As losses the exposure have

Based the restructuring on similar natural need to losses have disasters, with We past may any to low. we programs borrowers with work due very that expect fires. payment in place be experience to

performance. revenue net Net the Key for prior pleased the now the year the increased our presented the special which performance relative the excludes year million -- and impact to Fourth the pre-provision earnings prior Shifting for XX% adjusted FDIC for We're fourth in quarter. of or continued quarter X. financial on the bank improvement year. metrics most relative to year with notably the XXXX the were assessment per relative to are share. $X.XX $XXX to quarter failures, Slide

$XXX share. fourth or the quarter, per were million $X.XX earnings For

expanded yields. liabilities for its to X.XX% net margin quarter, in trough ago X.XX% primarily The than interest margin in due quarter the The earning faster downward and asset the for quarter interest-bearing X.XX% year of quarter. fourth the prior was consecutive against compared the repricing to

Our efficiency XX%. ratio improved

highlight improvement these Ryan measures for leverage As profitability will year. our later, and in guidance XXXX for anticipates operating continued the positive

the ending Customer and basis deposits the and year. on both quarter fourth an increased in full average

quarter. prior in see grew basis the at on linked-quarter relative was X.X% noninterest-bearing stability for a on demand X.X% which slightly loan full Average We average, continue deposits, over the growth year. to modest and

very manageable. balances, or increased loss The continue At XX next losses any level for the in the the commercial nonaccrual occur to by primarily credit. Net classified XX% in industrial or be by decreased to loans and time, portfolio We real of at fact, may million realized quarter CRE million that and peak nearing annualized amount we of commercial the to were with basis significant believe loan the points estate. we strong $XXX in single portfolio. equity during the and in classified over X/X low quarter the losses in $XX support and at a net that guarantor of remained due the higher year same are balances expect levels attributable will the

Moving period Provision earnings had a credit of revenue. to $X.XX $X.XX Slide X. prior negative Slide Diluted prior pre-provision and per of X a in per quarter quarter. for of year the losses in this $X.XX share view $XX share. $X.XX compared was to million X-quarter impact provides the net

$XXX prior Adjusted as funding On improvement cost growth basis. an X% pressures previously fourth outpaced revenue improvement results expenses a somewhat. million noted, on the our quarter basis, a linked And year adjusted an period. of quarter of XX% as abated reflect over

inflationary continue despite Our pressure. Capital to we Markets and results, expense maintain experienced discipline business strong

to sustained next in our and will that increased net margin interest improvement are we optimistic Looking our reflect performance year, the growth, continued profitability.

high-level our Richards, to that the Ryan performance. details overview, Ryan? Financial for time related over Chief to Officer, I'll With our additional turn

R. Richards

margin the Thank see and and drivers and performance net for begin both good quarters I will you, the everyone. components pre-provision measures, consecutive a discussion on Beginning you X, Harris, interest X-quarter Slide of reflecting evening, improvement. and associated will X with net income with interest trend net of revenue.

the interest-bearing yields. the the liabilities repricing During downward pressure asset quarter, on outpaced of

Net borrowings. billion a average margin in further benefited short-term interest from reduction $X.X of

on net interest in are X. margin the changes included Slide details Additional on

the in left-hand the components of and margin, of interest both net page, a changes linked rate key volume. incorporating we quarter changes this and On waterfall provided the outlining side start key

the expanded reflected quarter, sources basis the cost on lesser slide point XX improvement chart by XX a in primarily margin due Improved basis contribution somewhat to cost margin yields right-hand point year shows asset this margin funding XX improved borrowings, interest respectively. in costs by deposits. lower deposits the net versus also point X This the the of basis prior declines the in earning from interest noninterest-bearing to and attributable a waterfall, from points improvements funding. sequentially were the in The of funds. basis and net is offset The benefiting and of

and year on ago for million increase quarter, XX% income X.X% noninterest $XXX Moving Slide X. an basis to the income the was of revenue on versus quarter quarter. linked and noninterest Customer-related a

growth as record investments. with We continue we pleased fees in full for are capital part the of to and customer quarter our the strategic from markets by year, realize driven large performance

markets were the a XXXX. full the up compared contributor increased the also key revenue account to quarter Capital to and year for for year. full were fees fee XX% Commercial

shown prior on right customer-related income. on the to factors for chart As from the and income noted page, interest side periods previously this prior revenue and increased fee and net of the due revenue adjusted total quarter both the year

outlook fee Our year for of full increasing full XXXX. is year moderately the customer-related XXXX the relative to income for

million million, attributable compensation-related shown prior expense to legal $XXX bars $XXX blue expenses in on increases increased compared services by in the quarter. at noninterest slight lighter increased the Adjusted $X $XX to occupancy. accruals million, million Reported Slide and X, to also

will for revenue-generating the this expenses outlook slightly we full and expectation for XXXX that Included businesses. acquisition outlook adjusted relative related marketing the to Our California XXXX. spend, is moderately to expense year incur is year other to the investments in noninterest in increase increasing full in branch

Slide loans over and XX our average in trends highlights deposits the year.

side, by benchmark loans fixed this to mortgages quarter. loan response On in you Consumer see the increase. with loan repricing be loans swaps. short-term just XX drivers X% to reduction C&I the over offsets yields Total for for from increased left the declined and loan in and that points, rates the continue basis some average largely can partial

increased and noted business our have bankers frontline customers. small optimism, client particularly commercial from Our

originations. and outlook XXXX managed expected full balances increasing real Our year somewhat slightly in commercial loans expected is relative estate XXXX. commercial for declines is for led be as period-end by are full by year mortgages Growth payoffs new exposures to outpace offset to to loans,

on the of Turning to fourth increased the the page. deposits deposit balances Average modestly. right side quarter for

As we the of Harris XX the the total see deposits decreased white deposits, of quarter. shown are XX declined Interest-bearing points by continue pleased deposits. level to to Cost mentioned noninterest-bearing basis points versus costs stability by boxes earlier, prior by in X.XX%. basis we the in

On higher disciplined month spot average, X.XX%. been rate line has compared interest-bearing near rate the expectations, at the was our in in rate on cost spot deposits. XXX% December deposit and deposit repricing the quarter end Deposit the betas deposits X.XX% to was X.XX% and for period. reflecting on was prior Interest-bearing total with X.XX%

a relatively growth total by $XXX a in offset to Period grew $XXX chart in period-end XX% reduction approximately higher-cost and the deposits. includes of $XXX Compared total balance stable and end, deposits customer total were broker more deposits. comprised million trends. million quarter, XX trends. cost prior Left comprehensive ending approximately deposits view side of deposits, Slide of funding sources includes million bearing demand funding represented of noninterest

our shown categories right funding of the average with key the On total balances along side, cost for funding. are

quarter. this on total points the costs basis As the XX chart, declined seen by during funding

Moving to XX. Slide

customer-driven absorb portfolio exists of a to balance changes. be to primarily Our sheet funds storehouse investment

Maturities, we last principal portfolio investment present the million portfolios and related our were fourth securities securities in over years. investment amortization prepayment market and flows quarter. cash the Here, $XXX money from our X

reinvestment, at our of as of of funding our million. earning interest for as to the is a measure changes assets of X.X sensitivity to portfolio, favorable means and the wholesale remix securities quarter flows Net costs. reinvestment in price The The estimated to manage lower-yielding $XXX paydown to of investment were which contribute cash rates down a the well duration years. continues is

sensitivity, present assumes XX interest this we rate of our Slide which XX, Slide measures reaches standard XX interest target the on funds income follow December the view of implied assuming path Fed interest shock the rates as appendix parallel net While sensitivity provided we in presentation, on of X.XX%.

fourth of of XXXX. be sensitivity and is in net fourth have the the interest income quarters. when emergent higher Modeled to that the expected quarter with This compared broken prior out XXXX quarter both in latent includes of we X.X% impact

we rate also a implied the which to XXX path As path, and by points continue on X.X%. to sensitivity the expectations rates forward range shock between evolve, X% suggests basis the provide

of balance slide interest changes, reminder, and a sensitivity net some this on migration noninterest-bearing sheet for pricing time included deposits. while strategies of income view balance full not year other view assumptions, cost model guidance. allowing based into include additional rate in This expected static As higher presents features does deposits strategic a

for we and the customer-related with interest noninterest XXXX. and the growth, associated full relative income Our competition outlook year combined behavior the outlook loan continued fee for includes into XXXX. full realized and interest deposits XXXX yield risks moving leverage expense, income forward increasing net when is year including across sensitivity deposit opportunities, to for this positive anticipate our path for with guidance moderately operating curve rates and The of

attributable quarter basis the basis We and points begin of to on in previously commercial losses the loans over net Harris that be noted credit losses a quarter charge-offs of XX continue with with XX to just realized portfolio jump XX months quite in the annualized to single this manageable in quality credit. points our discussion XX. Slide the last

assets resolutions driven nonperforming increased $XXX by while large $XX criticized million decline portfolio. quarter, in decreased noted loan assets and Nonperforming million, largely at million previously several respectively. was successful classified and the the $XXX in balances together charge-off in par, with a by The

those reductions multifamily, and in loss to criticized borrower in benefit strong cash favorable classified was migration, in equity, staying result less estate, sponsor low increase primarily longer, primarily for costs may support classified grade rates slow refinance loans our in short-term despite benchmark opportunities. flows. flows significant remained to commercial real cash by the in should driven term due loans while Recent The rates pressure continued borrower office. content and increase Expected higher in due on operating industrial balances the interest unfavorable and

losses The the quarter loan loans prior to allowance was and nonaccrual with XXX%. stable versus compared improved at loss X.XX%, credit the coverage allowance for

ACL, For nonaccrual appendix, and reference classified our trend loans. we've for included in a

encompasses default. loans classified of set primarily methodology the which reminder, probability also default to loss, the reflect reserve a given measure of expected forward-looking a As used while is a of CECL measure loss

managed location granular XX an XX% this CRE property disciplined $XX.X overview carefully portfolio, decade of which well type provides balances. billion of The concentration a over limits. growth the with portfolio total and loan represents through and Slide is by diversified

estate, $XXX the of credits. by multifamily, of breakout sub-portfolios a in portfolio. problem million on and side Slide classified assets increase real in provides The our quarter. the XX CRE the classified during million right-hand provides commercial total office driven was increases in loans loans, view detailed the industrial and a chart Of $XXX primarily criticized drove which

continued on more the the perform experienced and than to on loan-to-value relatively of continue slide classified low with limited losses support. the when the left-hand portfolio CRE of portfolio value economic chart recent outlook, less either with CRE adjusted of reflects values. the than being the examined Overall, types current distribution LTV of ratios XX% we The by to loans expect appraisal loans problems bottom reasonably the to based sponsor or side well X/X borrowers, by index most the having

The is losses. credit capital in our losses, XX.X%. X shown Tier allowance for risk when loss-absorbing This, Our the on fourth grew as performance ratio quarter Common compares top profile the Slide loan combined reflected to in well and XX. to Equity quartile with

common through AOCI increase perspective individual improvement organically mature. portfolio our from and and in and loss accretion GAAP to expect equity securities We through that a both will down as earnings continue unrealized the securities pay regulatory

out earnings lower cost X% notes debt, in of note, quarter share in XXXX of fourth starting by the that coupons we redeemed impact per These preferred million of have the of first with the share. called capital. of positively replaced $XXX latter which $X.XX $X.XX XXXX, subordinated Tier of phase stock were begun X will subordinated exceeding quarter Of million to and with to of $XXX per million $XX issuances

Slide the outlook XX of provided summarizes presentation. over this the financial course

As full full year to XXXX. XXXX the reminder, of financial compared this year best performance represents estimate outlook our for for a the the as

expect outlook, growth and see pressures. we operating leverage Now funding expense revenue improved and as with positive to this efficiency outpaces

Shannon Drage

questions? Matt, line prepared our you open for concludes [Operator will the This Instructions] remarks. please

Operator

[Operator The Gosalia here Manan Morgan Instructions] question is from Stanley. from first

Manan Gosalia

benefit progress on the close talk you can going already. more there's It in curve, that do. are rate to assuming looks But at XX% like to a from a you fewer time, how cuts impact still come lag. here? some basis betas that's with which you deposit might expect same the there's I'm spot to about Can running how much forward

you through So some run if just of that. can

R. Richards

thanks Yes, the for observation.

we've deposits time response to in I different with lag deposits far, pricing much that, line know, behave. of on think how been And we the you very broker as about say the what previous a with pleased we've is there it's fair interest-bearing discussed and calls been response, associated so deposits. to also has with factor types anticipated

an has So Fed that rates, to remain each time will in been a we've true. been posture position the reduce athletic in that

expect potential we forward with it XX rate do than other move the think we've point right in-line really so XXXX, as any at And this far. to Predicting think be I I basis point. reason another to now, performance seen decrease what with wouldn't would prospect of of that, during difficult other thus beyond

Manan Gosalia

AOCI it. you to your something long for end curve? the seeing volatility have my of Got quarter? we're for in And that the follow-up, you especially do the is where to manage CETX ratio the need given is including that And

R. Richards

of capital that that question It view about the I that cognizant might are when is and actions and something take know get certainly periodically of, more additional we we still uncertainty inclusive there's III our is capital AOCI. of in sort where without managing expectation that, in-game that even the we'll environment of Basel about reside. the increasing, rules I think, an be And we

that we losses any about we include continuing today billion do And monitor that so goes. with think over are more realistic sort median certainly path in X in are to about us. things peer endgame we sort past with be we expectation in about of are excluding the time for and where when $X.X applicable our that levels Basel grow internally appendix AOCI that with capital levels, of glide those that capital do the an are path at capital comfortable could year, slides AOCI III that for so expectation of see what do hence, we the So our we

Manan Gosalia

that as how the to is the in that grow when long say impact really loan is volatility of impacting more about would only to curve if think book? end you opposed it fair buybacks it there So your you

Harris Simmons

at of you'll look I value tangible if appendix, see probably book the in with you the to at it's case. AOCI if that's think this, those for been I And has runs look how you respect think rapidly. pretty kind I mean proxy the -- improving back a projections off.

I last XX%, something around XX%, months. think the XX over it's

know that transition outline what final expect don't the period, we the we regulators are reengage like how with of to the so kind rules this. in look of going will And

expect a we can is certainly thing probably do that of will clarity. entirely to will one That's way back think in clear. capital I But to buyback we'd itself getting survive, solve timing point capital. that until will think That's I with the like activity not but It this of the actions. I anything good more a AOCI come meantime, the feel into how retard see about it continue we having where in path we're it. will to on think to this probably glide our without pretty

Operator

next from Our question is Deutsche Gizycki from Bank. Von Bernard

Bernard Von Gizycki

about interest unpack have the I The X.X% the just from from could X/XX, sensitivity, a the from beta the path just obviously, Fed income then little big deposit if the you X.X% the the bit the in funds you wonder XX%. increase more implied net rate at in model versus of difference XX%, Page XX. and that

Just update wonder quarter? could that if of of assumptions the walk kind you just the any through previous

R. Richards

you been that I line there what interest-bearing quoted deposits, with much on in speaking assumption deposit seeing. Listen, that's we've Yes. beta very to the think that

sync. So that's in

from assumption I there level behaviors about into and implied the think of migration noninterest-bearing us we've of grown over continued time. has from comfortable one the the time that over interest-bearing the deposits been seen that noninterest-bearing things is you've more with as tightened the

repricing asset from with and the that. that of playing bit us also rates, the still out that's think some benefiting some time more of be and the deposits down benefit to a we constructive seeing repricing how see is year, sensitivity system X NII about fixed through to latency little allowed from I still still

a with growing fund stable hope So and deposit base, we supplanting wholesale more and sources. anticipate

a I lends constructive more that think outlook. all to

Bernard Von Gizycki

have the back getting Great. the to NIM talked And then about mid-X%. past guys I know you in

Just based on that's been I discussed of think like the over a model years. assumptions couple here,

think any should for of give us for you timing 'XX? is kind of Just something that on about idea NIM outlook? longer-term like any Anything about we can think that kind to expectations and how

R. Richards

do question. we've naturally what thank certainly you more a but to manage curve for the Listen, per better can stand NIM we a it's se, Yes. don't true with before. that to that than yield outcome sloped been experiencing We

we things the were been at the that look of in constructed when more as having seem in not-too-distant reach. sort doesn't where So it's past mid-Xs we've of out way, something like

And to so yet of to we there's that get potential think levels. timing be to when back But seen. those is occurs the

Operator

Chris KBW. McGratty from

Christopher McGratty

Ryan, quarter, on in portfolio help portfolio continue movement as total be your could the liquidity guide levels? within use the thinking bond balance we the source How year? should the bond on funds. just between next earning sheet, us, in NII some a the about for Will earning the and help you asset the to you assets

R. Richards

growth. as noted funding in wholesale out, It's year-over-year, market, money the of down. in striving investment terms nice I as cash But related my down assets we've the invest of if think look seen have to just flows mean of securities, cost loan pay you we more you slide of in kind to sort point runoff maybe expensive those investment or being through use a out, total able pretty that I portfolio. earning prepared good remarks, touch a call in stayed I Chris. Yes. share securities that with at of a And

have from more heard flows portfolio. bit we're you remarks if being the cash do off reinvesting also moving you prepared little those to So of I and my forward, that securities think starting that investment from are kicked probably would look a

think our tapering -- the on opportunities shared with be to terms But a the compliance with increasing ways support So little our of there in growth, organic perhaps to bit prospects we growth runoff of security slightly deploy side. will the in you objectives. that customers' we that loan

Christopher McGratty

-- to about about any Harris, any close. But inorganic world Obviously, the comments in potential time. Okay. M&A? growth? regulatory thoughts shifting thoughts branch Great. deal Any you about going real have other that's is the And

Harris Simmons

We've net sense getting first, and back Well, where ramping it -- it. think currencies, several top about We're opportunities that back Signature se, I but of not way clawing per did in step doing back certainly over at looking been We're position really it that the be was we're strategically profitability mean take do I as is you way something last Valley just is our look -- of we think into have of I say, think And And to mind. position out revenue could where the and we're I pre-provision if nicely kind Bank a until our hit wall. the up Silicon in increasingly, the for that lot damage. made making the to deals steady a we position we're a us. more progress. a I to quarters.

now for and systems through And really is center us have, conversions internal of us. long We for that of kind behind a front getting a lot renovation. time,

in good so pretty we're respect, I that in And shape. think

in for us with done prepared in in the I way. still shape think being $XXX come terms regulatory of I good would week. we're crossing if that threshold, think sort this thing is new environment that And upon billion a that a anything that of

I'd pencils not us. but something that's center strategic that well, kind otherwise and So out for see possible it anything front sense, makes as it's of with

Operator

question is Clark Matthew from The Sandler. from Piper

Matthew Clark

afternoon, Good everyone.

charge-offs. Can just the give you the C&I business sense some a or Just exactly And you of of realized happened what is credit kind us that there? first for where was? on type

Derek Steward

in unique bank was retail company time. long Thanks for for our to situation unique it was a a created It company the by is banked very That, what purchased company. longtime portfolio. the we And equity grow It nothing had actually bank, business But and that pretty like private between the a challenges This a think, actually. challenges customer of to was client client was. the of just was It's question. or Sure. the for a XX- faster, It some in along XX-year a space. pushing led management else Derek. that really I the loss. the little the with

Matthew Clark

Okay. think shifting given pipeline number the to you kind markets us nicely. of quarter Or off Can customer sense can you back that fees, there? fourth the in feel then do like step change give And seasonally? for And a up environment? gears capital you do you build we'll

Scott McLean

thank interest last We've you. McLean, this I talking risk increase see last is in flow just products, No, basic more couple about revenue really meaningful been the structure, for the to friendly or question. years the just X business and But X.X the and some Yes. the which fourth our This we've loan overly the Scott in And capabilities, saying we've markets business, fourth produced of been capital over really regular years, and the the starting the out adding building appreciate been quarter, months and our technology markets there, product estate enthusiasm a syndications in so. and structure. real of haven't been products for we're saw been -- we've nice until rate the it building the a up we quarter. last

and very markets-type -- the on longer you very the bankers, with investment the lot opportunities, term. -- know, people current calling our lumpy. businesses We've have we are here. spent we programs got pinpointed But commercial to capital as said, capital a We've markets active infrastructure

benefit that should come. all leather years think to us the shoe in I

significant shrinking continuation also treasury an just seeing talk market nice merchant things a services, albeit a -- some business seeing we're often, management, us. just very we we're share but it very certainly trust It's of our some in a basic like about has which corporate market, large don't our -- business, then for And position. products,

we put see progress, So the capital should markets. we work of into continued all we've think, because hard

Harris Simmons

with And solid year a pipeline. into start they the

I thing think would add. I other that's the

grow continue think I is everything So therefore nicely. to to

Operator

is Christopher from Wells question Fargo. Spahr Next from

Christopher Spahr

kind question change postelection related attitude. energy, And the in Slide to XX, the you This see kind there's pop in just and growth and quarter. big is the and just the oil compare I of the a election obviously, gas prior of to when -- on

election -- much a loan do could -- might -- -- for Is is like what higher be there that? to commercial And there Just little might than areas it bit how the related? that is more other growth year? think momentum should you moderate be

Scott McLean

Scott. Sure. This is that. I'll take

were about We've trended $X little outstandings in ago. been that at we $X million energy volatility. billion, $XXX a bit bit a above. and Pricing has as reputation. think And And downturn there. good we're below been a market, a billion opportunities X years during $X banks long-time to have saw structure from the never we price X, little and exited down They increase XXXX the a I Our better around billion. with credit portfolio many have long-time portfolio basically, player

be C&I growth of a going So to nice forward. will it hope we source continue

billion they're growth increase. optimistic. our X.X% loan loans $X.X were just sense comment, is, general up about owners, general, political about in of business average medium-sized year-over-year, In a business, more that we And your small a terms little to

much, could regulatory I maybe some. that not think there's a medium-sized but and confront small- business issues abate, sense that

And be think more lending. family originations little about think C&I a that go X on coming our optimistic as we're balance year. the We don't the so X I strong sheet to in will

others be C&I for said an will has opportunity grow. to that but we you a a of So drag, and reasons little the think

Christopher Spahr

And is then Harris. for for my follow-up, this

size? approach kind for talked banks to time [ the about proposal. that spent what out benefit XXXX you Basel III obviously, debt it, long-term do calling you other So just of that your about ] regulation areas report, mean, some Harris, in just I in but annual of you now, comment the talking we'll call might

Harris Simmons

is coming some head and Well, taken been I off. think the think diversity sometimes, have beyond effective which, as the things mark. I the death of from out the of your cuts as having And X,XXX number of just CFPB,

that like, been coming seeing trying the into cetera, et made amount of things. goes energy was for get that at not these the -- regime not things into maybe a of to the think we And lot while fade we'll have things just in disclosure to legal a least, climate that that and that internally, You're I respect of challenges, just kind prepare time the with probably lot background The of for a permanently. at like industry.

commensurate yesterday, our building see think grow I just in And I sensible. a categories larger. of Travis meat lot Hill, with included, agenda we've risk laid sort and the And just I potatoes. kind done It's for banks, of infrastructure out many to back-to-basics. the of very what think back-to-basics it's our It's own he ability

outwardly, to so the we've been making able own people, focus the of just focused. have that message to circuit is very inwardly that being our And I'm kind recently as I

safe I think of industry a message new has, growth. think facilitates -- administration people lot in find the coming agencies a that to coming out a And see is I we to I the the we're the And that think going last and we the that that's have in why industry over more myself decade. the I want one optimistic and sound growth. of respects but

we're in and that see to clearly, be and It's a for going environment like worries people. that there very from are the really message of -- seeing a things I conducive could it. the growth-oriented derail coming crowd it's And certainly control But wants growth think I growth. economy. that, to think these tariffs,

hopeful. very I'm So

Operator

The next question JPMorgan. from is from Anthony Elian

Anthony Elian

you've Or year? of couple continue of half-weighted the first half loan in seen in the of increasing, For the growth guide growth is loan this expect XXXX? in you to that of slightly do your level quarters more past

Harris Simmons

that I strong see through a personally. year year. through the pretty just back lot growth It's not expect the or it's going half not. It's weighted whether to we'll steady it's so matter

Anthony Elian

just provide more you and follow-up, can the out loans? increase color multifamily, your industrial any office, for large that but quarter? on in across classified And my you I called drove this the know footprint? then credits was And increase that broad-based

Derek Steward

-- is answer was the was this that what pretty increase classified what question, Anthony, also one Derek. credit granular large distributed in the To increased. the our downgrades and Well, large geographies. It was not in footprint with in the or across just second it a

was CRE $XXX from slide, $XXX multifamily with from As and million industrial. million was million stated in from $XXX the

last that with is the lease-up plan So seeing and increase, that in industrial combine and really slower interest drove classify to it. We increased moves story are just well. construction that delays, exactly to occurring rate increases what said it costs are expenses It's multifamily it. and the as we're issues, for quarter. performance we And

perform At refinanced credits either performance. loan the will values, seem through. does be over able a our work stabilization like progress upgraded through to they'll of just to be reach little of their same time, It it these just and take to way a expect and And it's timing matter out and we or longer given that most time.

Operator

question-and-answer the back I'd the like turn concludes for This to floor comments. any closing session. management to

Shannon Drage

today. all you thank and Matt, us to joining for you, Thank

If our forward number phone you have This e-mail us appreciate your the to listed additional website. questions, interest with or on the please We Bancorporation. months Zions contact our you throughout look call. at in connecting coming concludes and

Operator

This concludes today's teleconference.

participation. you Thank lines your for this your disconnect again may at You time.

Zions Bancorporation, National Association (ZION) 21 Jan 252024 Q4 Earnings call transcript