Is Zions Bancorporation a Buy?

The $71-billion-asset Zions Bancorporation (NASDAQ: ZION) is coming off of a difficult quarter in which the bank reported net income of only $14 million, a 93% reduction from the $213 million in profit Zions reported in the first quarter of 2019. Headquartered in Salt Lake City, Utah, Zions operates primarily in 12 states on the West Coast, focusing on traditional banking products for small- and medium-sized businesses. Although the bank's credit quality should be watched closely given its loan composition, several factors really excite me about this bank.

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Profits were derailed in the first quarter of 2020 after Zions set aside a whopping $258 million to prepare for future loan losses brought on by the coronavirus pandemic. That credit provision is up from just $4 million in the first quarter of 2019. Part of the reason for the massive provision is that commercial loans make up nearly 76% of the bank's total loan book, while roughly 31% of loans are commercial and industrial loans.