Zions Bancorporation stock revives

SALT LAKE CITY (Deseret News) — Zions Bancorporation, one of last year's worst-performing stocks, leads the Standard & Poor's 500 Index in 2010 with a 78 percent gain as investors bet the Utah lender can minimize credit losses and new stock offerings.

Shares of Salt Lake City-based Zions are outpacing the next-best S&P 500 stock, oilfield-services firm Smith International Inc., by about 20 percentage points through Tuesday's close. The index has climbed 5.3 percent this year, with regional banks advancing 28 percent.

Chief Executive Officer Harris Simmons has faced down analysts calling for Zions to raise as much as $1 billion to shore up its balance sheet and repay $1.4 billion in bailout funds. Simmons has tried to avoid diluting shareholders by selling smaller blocks of stock and restructuring debt, a tactic that reflects "management with skin in the game," according to David Jackson, an analyst at Penn Capital Management.

"They were patient with raising capital, and they continue to be patient, and that's turned out to be an intelligent strategy," said Jackson, who helps manage $4.7 billion. Philadelphia-based Penn Capital and holds about 1.2 million Zions shares.

Zions operates in 10 Western and Southwestern states and ranks among the top 15 U.S. commercial banks by deposits. The stock rose 21 cents to $22.82 Tuesday.

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