Zions Bancorporation: Financial Loser

NEW YORK ( TheStreet) -- Zions Bancorporation ( ZION) was the loser among large U.S. financials, with shares sliding 7% to close at $16.72, more than reversing its gains from the previous session.

The Salt Lake City after Monday's market close reported its third-straight quarterly profit, with earnings of $62.5 million, or 35 cents a share, beating the 34-cent consensus estimate among analysts polled by Thomson Reuters. KBW analyst Brian Klock reiterated his "Outperform" rating for Zions, with a $23 price target, saying he believed the shares would "react negatively to the 9 bps in core net interest margin compression," despite operating results that were "largely in line."

The broad indexes all saw 2% declines, as investors reacted to reports that European Union finance ministers had cancelled a Wednesday meeting that was supposed to take place before a scheduled summit meeting, renewing fears that an agreement to expand the eurozone rescue wouldn't be reached by the Wednesday deadline.

The KBW Bank Index ( I:BKX) pulled back 3% to close at 38.79, with all 24 index components showing significant losses for the session.

Shares of Regions Financial ( RF) declined 5% to close at $3.71, after the Birmingham, Ala., lender reported third-quarter earnings available to common shareholders of $101 million, or 8 cents a share, beating the consensus EPS estimate of 4 cents.

While he said the company was not in a position to comment on Regions Financial's review of "strategic alternatives" for its Morgan Keegan unit, CEO Grayson Hall said "progress is on schedule and in line with our expectations," while refusing to comment on a Bloomberg report, that cited unnamed sources, saying that Regions was considering providing $200 million in financing to help put together a $1 billion deal for the brokerage unit.

Large banks seeing shares decline 4% on Tuesday included Bank of America ( BAC), closing at $6.46; Capital One ( COF), at $43.41; PNC Financial Services ( PNC), at $53.02; SunTrust ( STI), at $18.88; and Wells Fargo ( WFC), which closed at $25.55.

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-- Written by Philip van Doorn in Jupiter, Fla.

To contact the writer, click here: Philip van Doorn.

To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

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