Mosby raised his third-quarter EPS estimate for Zions by a nickel to 42 cents. The analyst estimates the company will earn $1.32 a share for all of 2012, followed by 2013 EPS of $1.96.

Mosby said that "after achieving the full benefit from the TARP repayment and lower debt conversion costs, we have forecasted that net interest margin compression and less release of loan loss reserves could stall quarterly earnings at around the $0.50 level until 4Q13," and that "ZION's Recovery: ZION's recovery could take longer than other banks' as the two levers of capital restructuring and the eventual rise in short-term interest rates could take the next three to four years to complete."

"However, once finished we see significant upside potential for ZION."

ZION Chart ZION data by YCharts

Interested in more on Zions Bancorporation? See TheStreet Ratings' report card for this stock.

RELATED STORIES:






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

>Contact by Email.

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.

If you liked this article you might like

14 Bank Stocks That Will Either Surge or Do Nothing

Winners and Losers of the Fed's 2017 Bank Stress Tests

Here's How to Play New Fed Stress Tests on the 34 Biggest U.S. Banks

Mid-Cap Bank M&A Could Surge as GOP Looks to Overhaul Financial Regulations

Here's Why Mid-Sized Bank Stocks Could Get a Boost