The loss was substantially less than expected by analysts, who on average expected a loss of around $1.00 per share. Shares of Zions finished the day up $0.66 (5.7%) to $12.22. Its 52-week range is $5.90-$54.90.
Zions said it set aside $762.7 million for loan losses during the second quarter of 2009. That is up approximately 85% from $114.2 million in the second quarter of 2008 and up approximately 65% from $297.6 million in the first quarter of 2009.
"The increased provision resulted from continued deterioration in commercial real estate and commercial and industrial loan portfolios; re-estimation of certain of the company's loss reserve factors based on a newly updated migration analysis reflecting more recent loss experience; and to incorporate the possibility of a more protracted credit cycle," Zions said in a statement.
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