Shares in Utah-based Zions Bancorp plunged Monday as effects of the collapse of two other large banks rippled through the U.S. financial system. Zions' CEO, though, said the institution’s financial position “remains strong.”
As regional banks feel the heat, Zions CEO Scott Anderson reassures customers the Salt Lake City-based institution’s financial position “remains strong.”| Updated: 5:54 p.m.
In a personal letter sent to bank customers Monday, Zions Bank President and CEO Scott Anderson acknowledged the failures of Silicon Valley Bank in California and New York City’s Signature Bank “have rattled the markets as well as many people’s nerves,” but he said that Zions’ remained in strong financial condition, with “access to tens of billions of dollars of readily available liquidity.”
First Republic Bank, a regional bank based in San Francisco; Western Alliance Bancorp, a bank holding company based in Phoenix; and PacWest Bancorp, headquartered in Beverly Hills, Calif., also saw their shares battered in early trading along with Zions as part of a wider negative reaction by jittery investors to the financial sector. Several regional banks, including Zions, had their trading suspended Monday as prices caved.
Zions’ deposits, Anderson said, are held in 1.4 million accounts with sums overwhelmingly smaller in size than the average balance at Silicon Valley Bank, which made the Santa Clara-based bank “much more susceptible to the kinds of outflows they experienced last week. The situation was similar at Signature Bank.”
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