However, Citi thinks the stock has been "caught in the storm" and sees upside potential ahead.
Following the failure of Silicon Valley Bank, Zions got caught in a broader panic among regional banks, which led to deposit outflows and funding pressures.
31, 2023, the bank's core deposits fell by nearly 10% to about $64 billion, according to Citi.
"ZION has been impacted by deposit outflows, but we find that ZION's core deposits (excluding broker deposits) ranks second lowest on cumulative beta on total deposits so far this cycle.
ZION reported positive trends towards the end of 2Q as core deposits were up 3% sequentially," Horowitz said.
Persons:
Zions Bancorporation, Keith Horowitz, Zions, Horowitz, ZION, CNBC's Michael Bloom
Organizations:
Citi, Silicon Valley Bank, Watch, Management
Locations:
Silicon, Mar, Zions, 4Q23, NII, ZION