As part of the restructuring Zions said it will consolidate seven bank charters into one while maintaining local CEOs, local pricing, local credit authority, and local branding. The company will also create a new Chief Banking Officer position, consolidate risk functions, and "various non-customer facing operations."
The company hopes to achieve an efficiency ratio in the low 60s by fiscal year 2017 as a result of the restructuring. Zions will maintain "noninterest expense below $1.60 billion in 2015 and 2016, and increasing somewhat in 2017," excluding severance and other restructuring-related items.
About 5.3 million shares of Zions were traded by 10:52 a.m. Tuesday, above the company's average trading volume of about 2.2 million shares a day.
TheStreet Ratings team rates ZIONS BANCORPORATION as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZIONS BANCORPORATION (ZION) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: