How the banking crisis may affect Utah, Zions Bank, the tech industry and commercial and residential lending.
“On balance, our banking industry is in solid shape here in Utah,” saida professor specializing in finance and banking at the University of Utah’s David Eccles School of Business. “That’s a reflection of a good regulatory environment and a solid economy.”remains low, layoffs have been minimal and retail sales are steady. The state’s economy is also more resilient in downturns than others because of its wider mix of industries — and Zions benefits from that., chief economist for the U.’s Kem C.
First Republic is one of the regional banks that, like Zions, had been flagged for a possible ratings downgrade byAs the Silicon Valley Bank drama unfolded, Zions Bank President and CEO Scott Anderson emailed the bank’s clients reassuring them that Zions did not have the same high concentrations of large, unprotected deposits from tech or cryptocurrency customers.
Those low-risk investments turned sharply negative as the Federal Reserve raised interest rates in its battle with inflation.Another key factor in Zions’ coming under the market’s stock-battering eyes were what Moody’s and other analysts called “significant” levels of unrealized losses in its portfolio of investments, which was a common thread leading to the bank failures.
Clark Ivory, CEO of Ivory Homes, Utah’s largest homebuilder, said his company is one of Zions’ bigger customers, and he agreed it had been unfairly caught up in jitters over the banking system. “Construction costs are still lofty and interest rates have doubled,” said Kip Paul, vice chair of investment sales for Cushman & Wakefield, a large brokerage based in Salt Lake City. “The majority of these projects that were in planning stages are getting intentionally slow-played now, or they’re all-out acknowledging they’re hitting the pause button.”
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