He also recommended taking profits in US Bancorp (USB) and Zion's Bancorp (ZION).

low subprime exposure

Hold -- Price 24.84 on Aug. 27
by Sterne, Agee & Leach

While recent weakness in the shares (down 21% quarter-to-date versus flat S&P Bank Index) has created an attractive entry point for [longer-term] investors ... the abundance of risk on Zions' balance sheet should continue to weigh. But we think that, long term, Zions possesses significant franchise value given its footprint, historical core operating performance, and growth potential. Our 28 target equates to 96% of our projected year-end 2009 [tangible book value]share, and 11.3 times our 2009 earnings estimate. Market cap: $2.7 billion.

PE of 8, a PEG of 1.37, and it pays a yield of 6.9%.

Regional banks, which had been pummeled until a sharp rebound that started Wednesday, have deposit bases that are so valuable that buyers of banks historically have paid sizable premiums to get them. Deposits now are being accorded little or no value throughout the banking industry as many institutions, including SunTrust Banks (STI), Marshall & Isley (MI), Comerica (CMA), Wachovia (WB) and Zions Bancorporation (ZION) trade around their tangible book values -- a conservative measure that excludes goodwill and other intangible assets.

Neutral - Price $27.05 on July 7
by Baird

We are lowering our rating on Zions to Neutral from Outperform. While we recognize the longer-term earnings power and value of the Zions franchise, we are increasingly concerned with respect to the company's eroding fundamentals and rapidly deteriorating credit-quality trends. Despite Zions' above-average credit-quality track record, asset-quality trends (both early-stage delinquencies and nonperforming assets) are showing notable deterioration, and we expect the company's exposure to the challenging residential construction markets...to continue to result in outsized provisions over the next few quarters... .Recent negative marks on Zions' securities portfolio have also negatively impacted capital levels at the company. ...Due to our expectations of higher provision expense, we are lowering our 2008 and 2009 EPS estimates to $2.90 and $3.35, respectively. Our new price target is $32, which assumes just under a 10 multiple on our 2009 EPS estimate and 1.2 times tangible book value. Market cap: $2.9 billion.

got some

Solid company. Guilty only by association.

Hold - Price 46.69 on Jan. 2
by Sandler O'Neill

ZION will incur an additional 31 cents a share in 4Q07 charges related to Lockhart Funding and its available-for-sale securities portfolio...on top of the roughly 60 cents a share in various costs ZION disclosed Dec.19. We're lowering our estimates [due to] new charges. Our 4Q07E EPS goes from 74 cents to 43 cents. Our '07E EPS consequently goes from $4.75 to $4.44. We're not [changing] our '08E EPS of $5.09 at this time [but] are lowering our 12-month target from 53 to 50...we see little room for this stock to move higher in the near term. Market cap: $5 billion.

Robert McNair