Zions Bancorporation (ZION) investor relations material

Macro environment and economic outlook

• Economic conditions remain resilient across western U.S. markets, with no significant credit deterioration observed despite global uncertainties.

• Main Street businesses are stable, and anticipated interest rate hikes are not expected to materially impact customer behavior.

• Lending growth has recently slowed while deposit growth has accelerated, with growth broadly distributed across geographies and industries.

Lending, credit, and portfolio management

• Lending in the NDFI sector remains flat due to perceived risk, with exposure limited to seasoned clients.

• Commercial real estate portfolio growth is intentionally moderated, reducing concentration from one-third to about 22% of the balance sheet.

• Multifamily, retail, and industrial segments are the primary areas of CRE growth, supported by new agency lending capabilities.

• The lending environment is highly competitive, with spread compression driven by increased bank participation, especially in CRE.

• Competition is mainly on price, not on loosening standards, with private credit seen as a riskier segment.

Deposit growth, product initiatives, and funding

• New consumer and business deposit products are exceeding expectations, contributing to strong deposit growth.

• Deposit pricing is managed locally to optimize total funding costs, focusing on replacing wholesale funding with customer deposits.

• Emphasis is on balancing loan and deposit growth, with a strategic focus on optimizing portfolio mix in a higher-rate environment.