Zions Bancorporation N.a. · NASDAQ:ZION
Zions Bancorporation N.a — Shareholder Meeting (April 2021)
17 slides from Zions Bancorporation N.a's shareholder meeting presentation, Apr 30, 2021
Slide 1: 2021 Annual Meeting of Shareholders: Response & Responsibility
2021 ANNUAL MEETING OF SHAREHOLDERS RESPONSE & RESPONSIBILITY April 30, 2021
Slide 2: Forward-Looking Statements; Use of Non-GAAP Financial Measures
Forward-Looking Statements; Use of Non-GAAP Financial Measures Forward Looking Information These materials include “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and assumpt
Slide 3: Zions Is A Collection of Community Banks
Zions Is A Collection of Community Banks Key Differentiators: Local decision-making and top-notch service, commercial banking focus, granular and low-cost deposit base ▪ Strategic local “ownership” of market opportunities and Zions’ Markets1 challenges Bank Headquarters Deposits % of Total Zions Ban
Slide 4: 2020 Key Performance Indicators
2020 Key Performance Indicators Bottom line results fluctuated significantly in 2020 due primarily to provision expense; core Adjusted PPNR was relatively stable Net Income Diluted Earnings Per Share Adjusted Pre-Provision Net Revenue(1) ($ millions) ($ millions) $884 $4.08 $4.16 $1,132 $1,162 $1,14
Slide 5: Profitability and Capital
Profitability and Capital Whether looking at operating income vs. risk assets, or capital coverage of loan losses, Zions ranks superior to most peers Pre-Provision Net Revenue less Net Charge Offs / Net Charge-Offs (LTM) / Risk Weighted Assets Common Equity Tier 1+Allowance for Credit Losses (Annual
Slide 6: Loss-Absorbing Capital
Loss-Absorbing Capital Common Equity Tier 1 capital plus the allowance for credit loss is strong relative to peers Common Equity Tier 1 Capital Ratio(1) CET1 Capital and Allowance for Credit Losses (2) / Risk Weighted Assets 1.6% CET1 Ratio ACL/RWA 1.2% 12.7% 12.7% 1.6% 11.9% 11.9% 1.7% 1.5% 1.4% 2.
Slide 7: Loan Loss Severity
Loan Loss Severity When problems arise, Zions generally experiences less severe loan losses due to strong collateral Annualized NCOs / Nonaccrual Loans Annualized NCOs / Nonaccrual Loans Five Year Average (1Q16 – 4Q20) Fifteen Year Average (1Q06 – 4Q20) 79% 66% 64% 57% 57% 57% 56% 53% 53% 53% 51% 47
Slide 8: Huge Success with the Paycheck Protection Program
Huge Success with the Paycheck Protection Program PPP lending success from Zions’ ability to link frontline bankers and borrowers with an agile technology deployment 10th Ranked 10th Nationally In PPP loan dollars originated of consolidated 2020 and 2021 SBA PPP loans Average PPP Loans Loan Yields $
Slide 9: Paycheck Protection Program Customers – Enhanced Relationships
Paycheck Protection Program Customers – Enhanced Relationships Zions has been highly successful at strengthening relationships and growing customer utilization of revenue generating services PPP Loans New Services Utilized by 2020 PPP Customers 25,000 > 55,000 Existing Customers 20,000 New-to-Bank C
Slide 10: Zions Receives National and Local Recognition for Excellence
Zions Receives National and Local Recognition for Excellence Affiliates have strong brands in their markets One of only 11 banks to have averaged 10 or more Greenwich Excellence Awards since 2009 (survey inception in 2009; Zions has averaged 14 awards per year) Top team of women bankers (2015-2019)
Slide 11: Everyone Counts
Everyone Counts Our success requires an environment where people are respected and valued, a talented workforce that reflects the diversity in our markets, and a determination to use our financial resources to strengthen our communities Some Examples of Our Efforts to Ensure We’re Building a Bank th
Slide 12: Key Corporate Objectives
Key Corporate Objectives Focus on four growth areas, supported by investments in key “enablers” driving robust financial performance Risk Management Data Small People & Business Commercial & Analytics Empowerment Capital Affluent Markets Operational Technology Excellence 12
Slide 13: Reducing Costs While Providing a Better and More Sustainable Work Environment
Reducing Costs While Providing a Better and More Sustainable Work Environment New 400,000 square foot technology and operations center in Midvale, Utah ▪ An EPA Super Fund site becomes a model of sustainable design ▪ 75% of the building’s power will be from on-site renewable solar energy ▪ Eliminate
Slide 14: Importance of Foundational Technology Investment
Importance of Foundational Technology Investment Recent statements by FDIC Chair Jelena McWilliams stress the importance of technology and replacing legacy technology systems within the banking industry “There are several things I would like to see done differently within the banking system, but … N
Slide 15: Technology: We Have Furthered our Digital Capabilities
Technology: We Have Furthered our Digital Capabilities Meaningfully Over the Last Several Years COMMERCIAL SMALL BUSINESS AFFLUENT CONSUMER Treasury Internet Banking 2.0 2018-2019 Online and Mobile Banking Replacement 2020-2021 $10B Demand Deposits 610,000 consumer accounts $100MM Fee Income 150,000
Slide 16: Technology: On the Horizon
Technology: On the Horizon We continue to invest in upgrades and additional digital products and services COMMERCIAL SMALL BUSINESS AFFLUENT CONSUMER Card– Digital Service Platform Upgrade >$1B Annual Spend and ~56,000 Accounts Treasury Internet Banking Upgrade ~ 9,500 customers, 37,000 users, $14B
Slide 17: Financial Outlook (1Q 2022E vs 1Q 2021A)
Financial Outlook (1Q 2022E vs 1Q 2021A) Outlook Comments Slightly ▪ Slight to moderate growth activity in the next twelve months, excluding PPP Loan Balances Increasing loans Stable to Net Interest Income ▪ Assumes benchmark rates generally consistent with the forward curve Slightly ▪ Excludes PPP
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