Circling Back on Zions After Q4 Earnings; Increasing Our Fair Value Estimate to $66 From $65

Zions Bancorporation is one of the smaller regional banks that we cover. Zions is primarily a commercial bank focused on small to midsize businesses in the western half of the United States, where on the ground relationships are key. Although it struggled during the financial crisis and the early years afterward, it has made meaningful improvements to its credit risk management and operational efficiency. We think the main determinants of the bank’s future success will be the interest-rate environment and the ability to maintain and improve operational efficiency.