Please ensure Javascript is enabled for purposes of website accessibility

Zions Bancorp: 9 Critical Numbers

By John Maxfield - Apr 8, 2013 at 11:26AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you own Zions Bancorp stock or are thinking about buying it, then at the very least, you should know these nine critical numbers.

Given that you clicked on this article, it seems safe to assume you either own stock in Zions Bancorp (ZION -0.47%) or are considering buying shares in the near future. If so, then you've come to the right place. The table below reveals the nine most critical numbers that investors need to know about Zions stock before deciding whether to buy, sell, or hold it.

But before getting to that, a brief introduction is in order. To paraphrase the bank's website, Zions originated as Keystone Insurance and Investment Company, a Utah Corporation, in April 1955. In April 1960, Keystone, together with several individual investors, acquired a 57.5% interest in Zions First National Bank from the Mormon Church. In 1965, the bank's name was changed to Zions Bancorp -- though, it operated as Zions Utah Bancorporation from 1966 to 1987. Zions subsequently went public in January 1966. At present, the Utah-based bank operates over 480 full-service banking offices in 10 states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, and Washington

As you can see in the table above, Zions is one of a handful of banks that are struggling to emerge completely from the financial crisis. While its nonperforming loans ratio is 13 basis points better than the industry average, at 1.71%, it's still far higher than it should be. In addition, its efficiency ratio exceeds many of the bank's peers, meaning that it costs Zions comparatively more to generate each dollar of revenue. And as a result, its return on equity is far below both the average and the ideal double-digit level that bank investors prefer to see.

On the other hand, the best that can be said about Zions at this point is that it pays out a generous 38% of its earnings via dividends and trades for a relatively paltry 1.19 times tangible book value -- though the latter is far from a bargain in the normal course of things.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Zions Bancorporation Stock Quote
Zions Bancorporation
ZION
$53.31 (-0.47%) $0.25

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
345%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.