Nevada State Bank’s parent says it’s not making enough money, will close some branches

this is the place
[CC BY-SA 3.0], via Wikimedia Commons

this is the place
[CC BY-SA 3.0], via Wikimedia Commons
Zions Bancorporation, the parent company of Nevada State Bank, announced this week it will close an as yet undisclosed number of branches and eliminate about 500 jobs across several Western states where Zions owns banks.

There are 20 Nevada State Bank branches in Southern Nevada, five in Reno, and another 15 branches in other Nevada communities.

“Whenever an industry goes through a period of declining revenue or declining income, the business will have to make some very difficult decisions in order to continue the course it needs to stay on in order to be a healthy company,” James Abott, director of Zions investor relations, told the Deseret News.

In a presentation to shareholders this week, the publicly traded corporation reported net earnings of $214 million in the third quarter of 2019. 

Third quarter net interest income of $567 million was less than a 1 percent increase over the third quarter of 2018. The margin on net interest income was 3.5 percent. However, the company projects “slightly decreasing” interest income over the next year because of low interest rates.

Zions also reported a 1.25 percent return on assets and a 14.2 percent return on equity. Since launching an “efficiency initiative” in 2015, “Zion’s profitability has doubled,” the corporate presentation said.

The presentation to shareholders also reported “solid loan growth” of 8 percent year over year, and “strong growth” of 11 percent over the year in customer-related fee income “primarily due to continued robust lending activity.”

Hugh Jackson
Editor | Hugh Jackson has been writing about Nevada policy and politics for more than 20 years. He was editor of the Las Vegas Business Press, senior editor at the Las Vegas CityLife weekly newspaper, daily political commentator on the Las Vegas NBC affiliate, and wrote the then-groundbreaking Las Vegas Gleaner, which among other things was the only independent political blog from Nevada that was credentialed at the 2008 Democratic National Convention. He spent a few years as a senior energy and environmental policy analyst for Public Citizen, and has occasionally worked as a consultant on mining, taxation, education and other issues for Nevada labor and public interest organizations. His freelance work has been published in outlets ranging from the Guardian to Desert Companion to In These Times to the Oil & Gas Journal. For several years he also taught U.S. History courses at UNLV. Prior to moving to Las Vegas, he was a reporter and then assistant managing editor at the Casper Star-Tribune, Wyoming’s largest newspaper.