Zions Bancorp Weighs on Regional Banks

NEW YORK ( TheStreet) -- Zions Bancorp ( ZION) is plummeting more than 9% on Tuesday after announcing dismal quarterly results after the bell on Monday. The regional bank reported a loss of 84 cents a share, a significantly larger miss than the loss of 55 cents analysts had expected.

Management said in its conference call that loan growth will remain challenging as construction and development portfolios continue to shrink. Net interest margins were also expected to be under pressure due to increasing cash balances.

Other regional banks are also sliding after Marshall & Ilsley ( MI) missed estimates, reporting a wider-than-expected loss in the second quarter as net charge offs increased. The stock was down 8.6%. Fifth Third Bancorp ( FITB), Regions Financial ( RF) and SunTrust Bank ( STI) were also down between 3% to 4% on Tuesday afternoon.

The SPDR KBW Regional Banking ETF ( KRE) was down 1.7%.

-- Reported by Shanthi Venkataraman in New York.

Follow TheStreet.com on Twitter and become a fan on Facebook.

Copyright 2010 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

More from Stocks

Spotlight On Space Exploration as Jeff Bezos' Blue Origin Sets Ticket Sale Date

Spotlight On Space Exploration as Jeff Bezos' Blue Origin Sets Ticket Sale Date

This Will Be the Ultimate Buy (or Sell) Signal for Stocks

This Will Be the Ultimate Buy (or Sell) Signal for Stocks

3 Fierce Chinese Tech Stocks to Gamble on Right Now

3 Fierce Chinese Tech Stocks to Gamble on Right Now

Stocks Slammed on Latest Trump Tariff Fears

Stocks Slammed on Latest Trump Tariff Fears

How Small-Cap Stocks Can Protect Your Portfolio From a Trade War

How Small-Cap Stocks Can Protect Your Portfolio From a Trade War