OPERATING SEGMENT INFORMATION

We manage our operations and prepare management reports and other information with a primary focus on geographical area. As of June 30, 2012, we operate eight community/regional banks in distinct geographical areas. Performance assessment and resource allocation are based upon this geographical structure. Zions Bank operates 105 branches in Utah and 26 branches in Idaho. CB&T operates 102 branches in California. Amegy operates 83 branches in Texas. NBA operates 74 branches in Arizona. NSB operates 53 branches in Nevada. Vectra operates 37 branches in Colorado and one branch in New Mexico. TCBW operates one branch in the state of Washington. TCBO operates one branch in Oregon. Additionally, each subsidiary bank, except for NSB, NBA and TCBO, operates a foreign branch in the Grand Cayman Islands.

The operating segment identified as “Other” includes the Parent, Zions Management Services Company (“ZMSC”), certain nonbank financial service subsidiaries, TCBO, and eliminations of transactions between segments. ZMSC provides internal technology and operational services to affiliated operating businesses of the Company. ZMSC charges most of its costs to the affiliates on an approximate break-even basis.

The accounting policies of the individual operating segments are the same as those of the Company. Transactions between operating segments are primarily conducted at fair value, resulting in profits that are eliminated for reporting consolidated results of operations. Operating segments pay for centrally provided services based upon estimated or actual usage of those services.

The following table presents selected operating segment information for the three months ended June 30, 2012 and 2011:



(In millions)	Zions Bank						CB&T						Amegy						NBA						NSB
	2012			2011			2012			2011			2012			2011			2012			2011			2012			2011
CONDENSED INCOME STATEMENT
Net interest income	$	171.6		$	176.4		$	117.9		$	128.4		$	90.4		$	98.3		$	41.4		$	43.3		$	31.0		$	35.3
Provision for loan losses	20.4			21.6			(3.8		)	(5.8		)	(8.9		)	(0.2		)	2.5			1.8			(1.6		)	(18.2		)
Net interest income after provision for loan losses	151.2			154.8			121.7			134.2			99.3			98.5			38.9			41.5			32.6			53.5
Net impairment losses on investment securities	(0.2		)	—			—			—			—			—			—			—			—			—
Loss on sale of investment securities to Parent	—			—			—			—			—			—			—			—			—			—
Other noninterest income	45.6			49.6			18.4			23.8			45.3			39.3			7.8			9.5			8.5			10.1
Noninterest expense	125.5			137.2			84.4			93.1			86.8			84.1			38.0			37.0			34.3			35.7
Income (loss) before income taxes	71.1			67.2			55.7			64.9			57.8			53.7			8.7			14.0			6.8			27.9
Income tax expense (benefit)	25.2			23.0			22.2			26.0			18.8			17.7			3.4			5.5			2.4			9.8
Net income (loss)	45.9			44.2			33.5			38.9			39.0			36.0			5.3			8.5			4.4			18.1
Net income (loss) applicable to noncontrolling interests	—			—			—			—			—			—			—			—			—			—
Net income (loss) applicable to controlling interest	45.9			44.2			33.5			38.9			39.0			36.0			5.3			8.5			4.4			18.1
Preferred stock dividends	(6.0		)	—			(3.3		)	—			(6.1		)	—			(1.5		)	—			—			—
Net earnings (loss) applicable to common shareholders	$	39.9		$	44.2		$	30.2		$	38.9		$	32.9		$	36.0		$	3.8		$	8.5		$	4.4		$	18.1
AVERAGE BALANCE SHEET DATA
Total assets	$	17,330		$	16,149		$	10,880		$	10,804		$	12,081		$	11,235		$	4,457		$	4,482		$	4,171		$	4,169
Total loans	12,402			12,799			8,350			8,285			7,909			7,794			3,280			3,305			2,169			2,408
Total deposits	14,814			13,621			9,219			9,221			9,595			8,712			3,721			3,745			3,626			3,548
Shareholder’s equity:
Preferred equity	480			480			248			262			410			488			275			305			242			360
Common equity	1,430			1,285			1,291			1,224			1,661			1,544			358			332			279			235
Noncontrolling interests	—			—			—			—			—			—			—			—			—			—
Total shareholder’s equity	1,910			1,765			1,539			1,486			2,071			2,032			633			637			521			595
	Vectra						TCBW						Other						Consolidated Company
	2012			2011			2012			2011			2012			2011			2012			2011
CONDENSED INCOME STATEMENT
Net interest income	28.6			26.0			7.1			7.6			(56.0		)	(99.1		)	432.0			416.2
Provision for loan losses	1.4			(1.2		)	0.8			3.2			0.1			0.1			10.9			1.3
Net interest income after provision for loan losses	27.2			27.2			6.3			4.4			(56.1		)	(99.2		)	421.1			414.9
Net impairment losses on investment securities	—			—			—			—			(7.1		)	(5.2		)	(7.3		)	(5.2		)
Loss on sale of investment securities to Parent	—			—			—			—			—			—			—			—
Other noninterest income	5.6			5.3			0.7			0.8			(1.6		)	(4.9		)	130.3			133.5
Noninterest expense	24.7			26.3			4.3			3.9			3.6			(1.0		)	401.6			416.3
Income (loss) before income taxes	8.1			6.2			2.7			1.3			(68.4		)	(108.3		)	142.5			126.9
Income tax expense (benefit)	2.7			2.1			0.9			0.4			(24.6		)	(30.2		)	51.0			54.3
Net income (loss)	5.4			4.1			1.8			0.9			(43.8		)	(78.1		)	91.5			72.6
Net income (loss) applicable to noncontrolling interests	—			—			—			—			(0.2		)	(0.2		)	(0.2		)	(0.2		)
Net income (loss) applicable to controlling interest	5.4			4.1			1.8			0.9			(43.6		)	(77.9		)	91.7			72.8
Preferred stock dividends	—			—			(0.2		)	—			(19.4		)	(43.8		)	(36.5		)	(43.8		)
Net earnings (loss) applicable to common shareholders	5.4			4.1			1.6			0.9			(63.0		)	(121.7		)	55.2			29.0
AVERAGE BALANCE SHEET DATA
Total assets	2,380			2,245			871			852			720			1,056			52,890			50,992
Total loans	1,993			1,791			557			586			69			(128		)	36,729			36,840
Total deposits	2,029			1,873			721			671			(783		)	(506		)	42,942			40,885
Shareholder’s equity:
Preferred equity	70			70			13			15			93			266			1,831			2,246
Common equity	208			204			78			72			(592		)	(298		)	4,713			4,598
Noncontrolling interests	—			—			—			—			(2		)	(1		)	(2		)	(1		)
Total shareholder’s equity	278			274			91			87			(501		)	(33		)	6,542			6,843

The following table presents selected operating segment information for the six months ended June 30, 2012 and 2011:



(In millions)	Zions Bank					CB&T						Amegy						NBA						NSB
	2012			2011		2012			2011			2012			2011			2012			2011			2012			2011
CONDENSED INCOME STATEMENT
Net interest income	$	344.2		$	349.0	$	235.7		$	257.1		$	184.7		$	191.3		$	83.5		$	86.4		$	62.2		$	68.4
Provision for loan losses	60.9			60.6		(6.7		)	5.4			(32.2		)	3.1			9.0			2.5			(8.3		)	(17.4		)
Net interest income after provision for loan losses	283.3			288.4		242.4			251.7			216.9			188.2			74.5			83.9			70.5			85.8
Net impairment losses on investment securities	(0.2		)	—		—			—			—			—			—			—			—			—
Loss on sale of investment securities to Parent	—			—		(9.2		)	(13.5		)	—			—			—			—			—			—
Other noninterest income	100.9			99.1		36.9			62.2			78.9			73.3			15.5			18.0			16.4			18.7
Noninterest expense	247.5			265.6		165.6			183.4			168.8			164.0			75.9			82.1			69.6			70.3
Income (loss) before income taxes	136.5			121.9		104.5			117.0			127.0			97.5			14.1			19.8			17.3			34.2
Income tax expense (benefit)	48.1			41.2		41.3			46.5			42.1			31.9			5.5			7.8			6.0			11.9
Net income (loss)	88.4			80.7		63.2			70.5			84.9			65.6			8.6			12.0			11.3			22.3
Net income (loss) applicable to noncontrolling interests	—			—		—			—			—			—			—			—			—			—
Net income (loss) applicable to controlling interest	88.4			80.7		63.2			70.5			84.9			65.6			8.6			12.0			11.3			22.3
Preferred stock dividends	(12.0		)	—		(6.6		)	—			(12.2		)	—			(1.5		)	—			—			—
Net earnings (loss) applicable to common shareholders	$	76.4		$	80.7	$	56.6		$	70.5		$	72.7		$	65.6		$	7.1		$	12.0		$	11.3		$	22.3
AVERAGE BALANCE SHEET DATA
Total assets	$	17,293		$	16,158	$	10,857		$	10,785		$	12,058		$	11,228		$	4,462		$	4,455		$	4,148		$	4,134
Total loans	12,468			12,814		8,347			8,316			7,892			7,683			3,280			3,289			2,186			2,416
Total deposits	14,759			13,557		9,166			9,217			9,534			8,706			3,715			3,728			3,597			3,518
Shareholder’s equity:
Preferred equity	480			480		255			262			449			488			290			305			251			360
Common equity	1,408			1,289		1,286			1,207			1,653			1,527			355			328			277			231
Noncontrolling interests	—			—		—			—			—			—			—			—			—			—
Total shareholder’s equity	1,888			1,769		1,541			1,469			2,102			2,015			645			633			528			591
	Vectra					TCBW						Other						Consolidated Company
	2012			2011		2012			2011			2012			2011			2012			2011
CONDENSED INCOME STATEMENT
Net interest income	$	54.3		$	51.8	$	14.5		$	15.2		$	(104.8	)	$	(179.2	)	$	874.3		$	840.0
Provision for loan losses	2.4			1.9		1.4			5.1			—			0.1			26.5			61.3
Net interest income after provision for loan losses	51.9			49.9		13.1			10.1			(104.8		)	(179.3		)	847.8			778.7
Net impairment losses on investment securities	—			—		—			—			(17.3		)	(8.3		)	(17.5		)	(8.3		)
Loss on sale of investment securities to Parent	—			—		—			—			9.2			13.5			—			—
Other noninterest income	11.0			10.8		1.3			1.3			(13.4		)	(12.6		)	247.5			270.8
Noninterest expense	49.6			51.0		9.0			8.4			8.0			(0.2		)	794.0			824.6
Income (loss) before income taxes	13.3			9.7		5.4			3.0			(134.3		)	(186.5		)	283.8			216.6
Income tax expense (benefit)	4.3			3.1		1.8			0.9			(46.2		)	(51.9		)	102.9			91.4
Net income (loss)	9.0			6.6		3.6			2.1			(88.1		)	(134.6		)	180.9			125.2
Net income (loss) applicable to noncontrolling interests	—			—		—			—			(0.5		)	(0.5		)	(0.5		)	(0.5		)
Net income (loss) applicable to controlling interest	9.0			6.6		3.6			2.1			(87.6		)	(134.1		)	181.4			125.7
Preferred stock dividends	—			—		(0.2		)	—			(68.2		)	(81.9		)	(100.7		)	(81.9		)
Net earnings (loss) applicable to common shareholders	$	9.0		$	6.6	$	3.4		$	2.1		$	(155.8	)	$	(216.0	)	$	80.7		$	43.8
AVERAGE BALANCE SHEET DATA
Total assets	$	2,372		$	2,249	$	884		$	852		$	661		$	988		$	52,735		$	50,849
Total loans	1,963			1,787		556			577			68			(128		)	36,760			36,754
Total deposits	2,028			1,873		734			670			(876		)	(532		)	42,657			40,737
Shareholder’s equity:
Preferred equity	70			70		14			15			284			182			2,093			2,162
Common equity	205			203		77			71			(582		)	(236		)	4,679			4,620
Noncontrolling interests	—			—		—			—			(2		)	(1		)	(2		)	(1		)
Total shareholder’s equity	275			273		91			86			(300		)	(55		)	6,770			6,781