Zions Bancorp. in Salt Lake City will consolidate its seven bank charters into one and create the position of chief banking officer to cut costs and improve returns.

The $57.1 billion-asset company will maintain its separate bank brands and retain local chief executives with local credit authority. The charter consolidation requires regulatory approval and Zions did not provide a timetable for completing the consolidation. Zions will release further details in a call with investors today.

Zions said the changes are intended to help it improve its efficiency ratio to the low 60% range by 2017; increase returns on tangible common equity; and achieve pretax cost savings of $120 million yearly by 2017.

The restructuring "will allow us to increase our profitability by streamlining our ability to get work done, and to remain competitive in a fast-changing banking industry," Harris Simmons, chairman and CEO, said in a statement.

As part of the restructuring, Zions promoted Keith Maio from CEO of National Bank of Arizona to chief banking officer for Zions. In the new position of chief banking officer, Maio will be responsible for retail banking, wealth management, and residential mortgage lending. Maio will remain chairman of National Bank of Arizona. Mark Young, executive director of real estate at National Bank of Arizona, was named that bank's CEO.

Additionally, Zions gave its holding company's president, Scott McLean, the additional title of chief operating officer. Zions also promoted LeeAnne Linderman from executive director of retail and omni-channel banking at Zions Bank, to executive vice president of retail banking for the holding company.

Zions also said Monday that it has sold $81 million of amortized-cost collateralized debt obligations during the second quarter, realizing a pretax loss of $25 million.

Zions has had an ongoing process of selling off its collateralized debt obligations, as a way to improve its capital ratios. The Federal Reserve in 2014 rejected Zions' capital plan as part of the Comprehensive Capital Analysis Review, or CCAR. This year, Zions passed, although with a 5.1% Tier 1 common capital ratio, just above the required 5% minimum.

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