Zions Bancorporation, National Association (ZION) risk factors, FY2024 10-K

Other

1. 01Credit quality has adversely affected us in the past and may adversely affect us in the future
2. 02We have a concentration of risk from counterparties, which may have unique risk characteristics that may adversely affect our results
3. 03We have a concentration of risk in our loan portfolio, including, but not limited to, loans secured by real estate, oil and gas-related lending, and leveraged and enterprise value lending. These loans may have unique risk characteristics that may adversely affect our results
4. 04Our business is highly correlated with local economic conditions in a specific geographic region of the U.S
5. 05We could be negatively affected by adverse economic conditions
6. 06Failure to effectively manage our interest rate risk could adversely affect our results
7. 07Changes in the levels and sources of liquidity and capital may limit our operations and potential growth
8. 08Unfavorable rating actions from rating agencies could adversely affect both us and the holders of our securities

STRATEGIC AND BUSINESS RISK

1. 09Challenges faced by other financial institutions could adversely affect financial markets as a whole and have indirect adverse effects on us
2. 10intermediaries, such as clearing agencies, clearing houses, banks, securities firms, and exchanges, with which we interact on a daily basis, and therefore, could adversely affect us
3. 11We may not be able to hire or retain qualified personnel or effectively promote our corporate culture, and recruiting and compensation costs may increase due to changes in the workplace, marketplace, economy, and regulatory environment
4. 12Our ability to develop, adopt, implement, and deliver technological advancements could adversely affect us

OPERATIONAL RISK

1. 13Our operations could be disrupted by the impact of new and ongoing projects and initiatives
2. 14We could be adversely affected by failures in our internal controls
3. 15We could be adversely affected by internal and external fraud schemes
4. 16Climate-related and other catastrophic events, including but not limited to, hurricanes, tornadoes, earthquakes, wildfires, floods, mudslides, prolonged drought, and pandemics may adversely affect us, our customers, the general economy, financial and capital markets, and specific industries
5. 17We utilize models in the management of the Bank. There is a risk that these models are inaccurate in various ways, potentially leading to suboptimal decisions
6. 18We outsource various operations to third-party suppliers, which could adversely impact our business and operational performance

TECHNOLOGY RISK

1. 19Our operations and customer services could be adversely impacted by system vulnerabilities, failures, or outages

CYBERSECURITY RISK

1. 20We are subject to various information system failures and cybersecurity risks that could adversely affect our business and financial performance
2. 21ZIONS BANCORPORATION, NATIONAL ASSOCIATION AND SUBSIDIARIES
3. 22Internal stress testing and capital management, along with provisions of the National Bank Act and OCC regulations, may limit our ability to increase dividends, repurchase shares of our stock, and access capital markets
4. 23Regulatory requirements, economic conditions, and other factors may require us to raise capital at times or in amounts that are unfavorable to us
5. 24We could be adversely affected by risks related to accounting, financial reporting, and regulatory compliance
6. 25The value of our goodwill may decline in the future
7. 26We may unable to fully realize our deferred tax assets, which could adversely affect our operating results and financial performance

LEGAL/COMPLIANCE RISK

1. 27Laws and regulations governing us and the financial services industry impose significant limitations on our business activities, subjecting us to increased regulation and additional costs
2. 28Political developments, including those arising from transitions in administration and shifts in congressional control, may create volatility and uncertainty, potentially resulting in significant changes in the size, scope, and effectiveness of government agencies and services
3. 29alter the purpose, funding, or enforcement powers of certain agencies; (3) significantly reduce the size of the federal government and workforce; and (4) modify, reinterpret, replace, or repeal various laws, regulations and regulatory guidance
4. 30Legislative, administrative, and judicial changes to tax laws, regulations, and case law may adversely impact our business and financial performance
5. 31We could be adversely affected by legal and governmental proceedings
6. 32The corporate and securities laws governing us are less developed than those for state-chartered corporations, potentially impacting our ability to execute corporate transactions efficiently and optimally
7. 33Differences between the National Bank Act and state law requirements regarding mergers could hinder our ability to execute acquisitions as efficiently and advantageously as bank holding companies or other financial institutions
8. 34We are subject to restrictions on permissible activities, which limit the types of business we may conduct and may complicate acquisitions of other financial companies
9. 35We face various reputational risk issues arising from operational, regulatory, compliance, and legal risks

OTHER RISKS

1. 36Wars, international trade policies and disputes, geopolitical conflicts, and retaliatory measures imposed by the U.S. and other countries, including the responses to such measures, may significantly disrupt domestic and foreign economies and markets
2. 37Stakeholder views and developments related to environmental and social issues could lead or require us to restrict or modify certain business activities and negatively affect our business and reputation