ZION Loss Much Wider Than J.P. Morgan Estimate

Zions Bancorporation (NASDAQ: ZION) reported 4Q EPS of ($0.62), with core EPS of ($0.57) excluding the impact of expenses associated with the company's FDIC indemnification asset, J.P. Morgan reports.

“The loss was much wider than our ($0.38) estimate and consensus of ($0.36),” J.P. Morgan writes. “While provision expense continued to decline, the pace of reduction was slower than expected as Zions continues to work out loans.

“4Q results were similar to recent quarters in that a credit cleanup took place, more shares were issued to plug a capital hole, and management conveyed a more optimistic view of the new year ahead.”

J.P. Morgan maintains its Neutral rating on Zions Bancorporation, which closed Monday at $23.75.