By Pritam Biswas (Reuters) -Zions Bancorp reported a rise in third-quarter profit on Monday, helped by stronger interest income and despite taking a hefty loss on two loans, sending shares of the bank up 2% in after-market trading. Zions disclosed last week that it would take a $50 million loss in the third quarter on two commercial and industrial loans from its California division. The statement from the bank, combined with separate disclosures from Western Alliance and Jefferies about a fraud lawsuit involving Cantor Group V and exposure to bankrupt auto parts maker First Brands, respectively, led to a decline in banks' shares on Thursday as investor concerns over lending intensified. LOAN LOSSES AN ISOLATED INCIDENT "We are confident this was an isolated incident in our portfolio," Zion

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