Operating Segment Information

9 Months Ended

Sep. 30, 2012

Operating Segment Information [Abstract]

Operating Segment Information

OPERATING SEGMENT INFORMATION

We manage our operations and prepare management reports and other information with a primary focus on geographical area. As of September 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 82 branches in Texas. NBA operates 74 branches in Arizona. NSB operates 53 branches in Nevada. Vectra operates 38 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 September 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	$	170.6		$	177.6		$	118.7		$	127.8		$	91.0		$	99.4		$	42.1		$	43.0		$	30.4		$	33.5
Provision for loan losses	17.1			30.5			(2.8		)	(1.5		)	(18.3		)	(13.0		)	1.8			7.6			(1.2		)	(15.6		)
Net interest income after provision for loan losses	153.5			147.1			121.5			129.3			109.3			112.4			40.3			35.4			31.6			49.1
Net impairment losses on investment securities	(0.1		)	(0.3		)	—			(0.5		)	—			—			—			—			—			—
Loss on sale of investment securities to Parent	—			—			—			(7.2		)	—			—			—			—			—			—
Other noninterest income	46.5			55.7			18.6			22.1			38.9			37.8			7.5			8.8			8.8			9.8
Noninterest expense	123.5			142.2			85.2			89.3			86.3			74.3			37.3			36.3			31.3			35.4
Income (loss) before income taxes	76.4			60.3			54.9			54.4			61.9			75.9			10.5			7.9			9.1			23.5
Income tax expense (benefit)	27.4			20.5			21.8			21.4			20.8			25.6			3.4			3.1			3.1			8.1
Net income (loss)	$	49.0		$	39.8		$	33.1		$	33.0		$	41.1		$	50.3		$	7.1		$	4.8		$	6.0		$	15.4
AVERAGE BALANCE SHEET DATA
Total assets	$	17,641		$	16,259		$	11,000		$	10,960		$	12,231		$	11,362		$	4,447		$	4,458		$	4,085		$	4,232
Cash and due from banks	359			361			168			179			259			284			70			65			83			93
Money market investments	2,725			1,071			1,296			1,254			2,446			1,575			482			605			936			961
Total securities	1,331			1,496			362			391			315			420			274			273			774			689
Total loans	12,566			12,686			8,332			8,257			7,981			7,858			3,402			3,277			2,156			2,360
Total deposits	15,140			13,741			9,404			9,336			9,805			8,831			3,766			3,722			3,597			3,595
Shareholder’s equity:
Preferred equity	444			480			184			262			330			488			198			305			180			360
Common equity	1,441			1,351			1,307			1,260			1,689			1,580			379			337			286			252
Noncontrolling interests	—			—			—			—			—			—			—			—			—			—
Total shareholder’s equity	1,885			1,831			1,491			1,522			2,019			2,068			577			642			466			612
	Vectra						TCBW						Other						Consolidated Company
	2012			2011			2012			2011			2012			2011			2012			2011
CONDENSED INCOME STATEMENT
Net interest income	$	27.4		$	26.5		$	7.1		$	7.6		$	(43.1	)	$	(44.8	)	$	444.2		$	470.6
Provision for loan losses	2.2			5.3			(0.7		)	1.3			—			—			(1.9		)	14.6
Net interest income after provision for loan losses	25.2			21.2			7.8			6.3			(43.1		)	(44.8		)	446.1			456.0
Net impairment losses on investment securities	—			(0.5		)	—			—			(2.6		)	(12.0		)	(2.7		)	(13.3		)
Loss on sale of investment securities to Parent	—			—			—			—			—			7.2			—			—
Other noninterest income	7.5			5.7			0.8			0.8			(6.7		)	(6.3		)	121.9			134.4
Noninterest expense	23.4			23.7			4.9			4.3			3.1			3.5			395.0			409.0
Income (loss) before income taxes	9.3			2.7			3.7			2.8			(55.5		)	(59.4		)	170.3			168.1
Income tax expense (benefit)	3.2			0.7			1.3			1.0			(20.3		)	(21.0		)	60.7			59.4
Net income (loss)	$	6.1		$	2.0		$	2.4		$	1.8		$	(35.2	)	$	(38.4	)	$	109.6		$	108.7
AVERAGE BALANCE SHEET DATA
Total assets	$	2,441		$	2,273		$	863		$	891		$	659		$	1,139		$	53,367		$	51,574
Cash and due from banks	54			49			20			18			(13		)	(13		)	1,000			1,036
Money market investments	47			28			158			142			(100		)	(117		)	7,990			5,519
Total securities	207			259			115			134			447			1,166			3,825			4,828
Total loans	2,046			1,864			556			583			70			(101		)	37,109			36,784
Total deposits	2,085			1,906			722			700			(1,041		)	(434		)	43,478			41,397
Shareholder’s equity:
Preferred equity	70			70			2			15			357			355			1,765			2,335
Common equity	214			206			80			74			(637		)	(426		)	4,759			4,634
Noncontrolling interests	—			—			—			—			(3		)	(2		)	(3		)	(2		)
Total shareholder’s equity	284			276			82			89			(283		)	(73		)	6,521			6,967

The following table presents selected operating segment information for the nine months ended September 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	$	514.8		$	526.6		$	354.4		$	384.9		$	275.7		$	290.7		$	125.6		$	129.4		$	92.6		$	101.9
Provision for loan losses	78.0			91.1			(9.5		)	3.9			(50.5		)	(9.9		)	10.8			10.1			(9.5		)	(33.0		)
Net interest income after provision for loan losses	436.8			435.5			363.9			381.0			326.2			300.6			114.8			119.3			102.1			134.9
Net impairment losses on investment securities	(0.3		)	(0.3		)	—			(0.5		)	—			—			—			—			—			—
Loss on sale of investment securities to Parent	—			—			(9.2		)	(20.7		)	—			—			—			—			—			—
Other noninterest income	147.4			154.8			55.5			84.3			117.8			111.1			23.0			26.8			25.2			28.5
Noninterest expense	371.0			407.8			250.8			272.7			255.1			238.3			113.2			118.4			100.9			105.7
Income (loss) before income taxes	212.9			182.2			159.4			171.4			188.9			173.4			24.6			27.7			26.4			57.7
Income tax expense (benefit)	75.5			61.7			63.1			67.9			62.9			57.5			8.9			10.9			9.1			20.0
Net income (loss)	$	137.4		$	120.5		$	96.3		$	103.5		$	126.0		$	115.9		$	15.7		$	16.8		$	17.3		$	37.7
AVERAGE BALANCE SHEET DATA
Total assets	$	17,410		$	16,192		$	10,905		$	10,844		$	12,116		$	11,273		$	4,457		$	4,456		$	4,127		$	4,167
Cash and due from banks	367			379			176			187			293			298			70			65			87			85
Money market investments	2,507			807			1,175			1,065			2,357			1,545			569			611			960			924
Total securities	1,380			1,573			350			399			331			451			276			255			770			646
Total loans	12,501			12,771			8,342			8,296			7,922			7,742			3,321			3,285			2,176			2,397
Total deposits	14,887			13,619			9,246			9,257			9,625			8,748			3,732			3,726			3,597			3,544
Shareholder’s equity:
Preferred equity	468			480			231			262			409			488			259			305			227			360
Common equity	1,419			1,310			1,293			1,225			1,665			1,545			363			331			280			238
Noncontrolling interests	—			—			—			—			—			—			—			—			—			—
Total shareholder’s equity	1,887			1,790			1,524			1,487			2,074			2,033			622			636			507			598
	Vectra						TCBW						Other						Consolidated Company
	2012			2011			2012			2011			2012			2011			2012			2011
CONDENSED INCOME STATEMENT
Net interest income	$	81.7		$	78.3		$	21.6		$	22.8		$	(147.9	)	$	(224.0	)	$	1,318.5		$	1,310.6
Provision for loan losses	4.6			7.2			0.7			6.4			—			0.1			24.6			75.9
Net interest income after provision for loan losses	77.1			71.1			20.9			16.4			(147.9		)	(224.1		)	1,293.9			1,234.7
Net impairment losses on investment securities	—			(0.5		)	—			—			(20.0		)	(20.3		)	(20.3		)	(21.6		)
Loss on sale of investment securities to Parent	—			—			—			—			9.2			20.7			—			—
Other noninterest income	18.5			16.5			2.1			2.1			(20.0		)	(19.0		)	369.5			405.1
Noninterest expense	73.0			74.7			13.9			12.7			11.1			3.3			1,189.0			1,233.6
Income (loss) before income taxes	22.6			12.4			9.1			5.8			(189.8		)	(246.0		)	454.1			384.6
Income tax expense (benefit)	7.5			3.8			3.1			1.9			(66.5		)	(73.0		)	163.6			150.7
Net income (loss)	$	15.1		$	8.6		$	6.0		$	3.9		$	(123.3	)	$	(173.0	)	$	290.5		$	233.9
AVERAGE BALANCE SHEET DATA
Total assets	$	2,395		$	2,257		$	877		$	865		$	660		$	1,039		$	52,947		$	51,093
Cash and due from banks	52			51			20			18			(16		)	(33		)	1,049			1,050
Money market investments	49			67			168			116			(98		)	(189		)	7,687			4,946
Total securities	217			257			119			138			444			1,191			3,887			4,910
Total loans	1,991			1,813			556			579			68			(119		)	36,877			36,764
Total deposits	2,047			1,884			730			680			(932		)	(498		)	42,932			40,960
Shareholder’s equity:
Preferred equity	70			70			10			15			309			240			1,983			2,220
Common equity	208			204			78			72			(600		)	(300		)	4,706			4,625
Noncontrolling interests	—			—			—			—			(3		)	(1		)	(3		)	(1		)
Total shareholder’s equity	278			274			88			87			(294		)	(61		)	6,686			6,844