California Loans News

The Zions Bancorp has lost $179.5 million during the third quarter this year. During the last year of the same period, the company had a net income of $33.4 million. This is the fourth consecutive quarterly loss for this bank.

The bank’s losses may be accounted for the charging off of bad loans. These are then added to the monetary reserves for loan losses. This move has been made as a protection for its portfolio against the current real estate difficulties experienced particularly in the Western states where the bank operates. The Zions Bancorp charged off $381.3 million in loans in the third quarter, compared with the second quarter’s $347.5 million.

Chief executive officer of Zions Bancorp Harris H. Simmons said, “Results from the third quarter were mixed. We again augmented our capital, reserves and liquidity positions, even as we saw some signs of stabilization in some geographies and markets. However, we believe the economy remains fragile and therefore we continue to exercise caution.”

The Zions Bancorp is based in Salt Lake City, Utah. It operates four branches of California Bank & Trust. These are also subsidiaries in the Sacramento area. It also operates approximately 500 full-service banking offices in the states of Arizona, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington. Other subsidiaries include Contango Capital Advisors, a wealth management firm, NetDeposit, an electronic deposit and payments processing technology for health care services, and Zions Direct a real estate broker-dealer company. The other companies under the Zions Bancorp have not reported losses as of time of release.

California Bank & Trust (CB&T) is a merging of other three institutions namely Sumitomo Bank of California, San Diego-based Grossmont Bank and First Pacific National Bank. CB&T also has several branch offices located through the state. No reports of further losses like its parent has acquired were disclosed.

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