U.S. Bank Agrees to Assume Leases for Smith’s Branches from Nevada State Bank

In keeping with Nevada State Bank’s (NSB) strategy to focus on full-service, freestanding branches, and following its recent acquisition of the insured deposits of the former Silver State Bank, officials from NSB, U.S. Bank and Smith’s Food & Drug Centers today announced that U.S. Bank has agreed to assume the leases for 28 NSB branches in Smith’s stores statewide.

Today’s announcement follows the Sept. 5 announcement that NSB was the successful bidder in acquiring the insured deposits of Henderson, Nevada-based Silver State Bank. With that acquisition, Nevada State Bank became the operator of Silver State’s 13 freestanding branches in Southern Nevada.

Dallas Haun, president of Nevada State Bank, said the U.S. Bank agreement involving most of its in-store branches will take effect in January of 2009, the same year that NSB — Nevada’s oldest state-chartered bank — will celebrate its 50th anniversary.

“The decision to transition from in-store branches is clearly in keeping with our company’s long-term strategic focus on providing full-service banking, as we feel freestanding branches provide a more quiet, professional atmosphere that’s conducive to handling all the financial needs of our clients,” Haun said.

Haun emphasized that NSB client loans and deposit accounts are not impacted in any way and will not be transferred to U.S. Bank.

“Simply put, it will be business as usual for our clients,” he said. “Over the next four months, we will be in continuous communication with our clients and our nearly 900 employees throughout the state to make this transition as seamless as possible.”

“We anticipate that most of our in-store employees will either be relocated to nearby Nevada State Bank branches, or have the opportunity to interview for a similar position with U.S. Bank. The status of our employees working in the in-store branches is critically important to us and was a major factor in our negotiations with U.S. Bank.”

NSB will be extending hours of operation at many of its freestanding locations throughout Nevada — most of which are within an average of two miles of the current Smith’s locations.

The bank currently has 40 freestanding branches in Nevada, excluding the newly acquired Silver State Bank branches. NSB has not opened a new branch in a Smith’s store in more than three years. And earlier this year, the bank sold its three branches in Food-4-Less stores, all of which were in Southern Nevada.

Haun cited several key strategic reasons for today’s decision:
* This transaction further strengthens NSB’s long-term commitment to focus on freestanding branches. During the past five years, NSB has spent more than $43 million building 10 freestanding branches around
the state in anticipation of its eventual exit from in-store branches.
* The bank’s customer research shows increased demand for online and other forms of electronic banking, such as giving business clients the ability to make withdrawals and deposits remotely.
* NSB freestanding branches also offer the added conveniences of drive-through banking, closer parking and enhanced expertise.

As part of the agreement with U.S. Bank, NSB will continue to operate three of its existing bank branches in Smith’s stores. All three are located in rural areas of Nevada. They include in-store branches in Mesquite, Wendover and Elko, Nev.

In addition, Haun said Nevada State Bank will continue to operate its existing in-store branch in Boulder City, Nev., located inside the Vons store.

Haun added that NSB will also continue to aggressively pursue opportunities to expand, as illustrated by the recent acquisition of Silver State Bank.

This agreement with U.S. Bank is subject to regulatory approval.

About Nevada State Bank

As Nevada’s fourth largest commercial bank, Nevada State Bank has assets of more than $4.6 billion, including the recent acquisition of the insured deposits of the former Silver State Bank. Established in 1959, it is the oldest state-chartered bank in Nevada with a total of 72 branches statewide, not including the Silver State Bank locations. Nevada State Bank is a full- service bank offering a complete range of consumer and business services. For more information on Nevada State Bank, call 800-727-4743 or access http://www.nsbank.com. Nevada State Bank is a subsidiary of Zions Bancorporation (Nasdaq: ZION).