Zions BancorporationZION

Morningstar Rating

Stock Research and Analysis

by Maclovio Pina

With its exposure to real estate in the troubled Southwest region and Utah, Zions' loan portfolio has suffered plenty of losses. Construction delinquencies have very painfully increased, and we think they will not subside in the near future. However, Read more

Bulls Say

Zions operates in markets that will be among the nation's fastest growers in the long term, which will help it keep up its asset expansion.

With an average loan/value ratio of less than 60% for its commercial real estate loans, the company is better protected against losses than its peers because its customers are not as leveraged. Read more

Bears Say

Having nearly 40% of its loan book concentrated in California, Arizona, and Nevada, Zions bears considerable risk to some of the worst-hit states in the country.

With nonaccrual loans at over 4.5% of loans and a worsening economy, more loan losses are likely to dent Zions' earnings in the near future. Read more

Strategy

Zions wants to be the major local commercial lender in each of its states. It intends to foster its subsidiaries' penetration in their markets, providing resources without forgoing their independent Read more

Management

Harris H. Simmons has been with Zions for more than 30 years. He became an officer in 1981 and the chairman, president, and CEO of the company in 1998. His and the rest of the management team's talents are currently being tested as the company navigates Read more

Profile

Zions Bancorporation is a financial holding company operating eight different banks. Through its more than 500 branches, it provides banking services for small and medium Read more

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