Zions' earnings show its core business continues to perform well, says Baird's George

Core Viewpoint - The recent panic surrounding the company led to an overreaction in stock prices, with analysts believing the worst is behind them and the company's fundamentals remain strong [1][2]. Financial Performance - The company reported over $220 million in revenue for the last three months, despite a $50 million fraud incident, indicating strong operational performance [2]. - The company achieved a 3% loan growth in the quarter, which is seen as encouraging [4]. - The company has maintained an impeccable credit track record, with only a 12 basis points loss per year over the last decade [4][5]. Market Sentiment and Investor Behavior - The recent events may shift how investors evaluate regional banks, similar to past market reactions to significant events [5][6]. - Market participants often react based on sentiment rather than fundamentals, as evidenced by the drastic stock price changes following the fraud incident [8][9]. - The $50 million loss is relatively minor compared to the company's pre-provision earnings of $1.3 billion, suggesting that the market's reaction was disproportionate [9].