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.”