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, 2013, we operate eight community/regional banks in distinct geographical areas. Performance assessment and resource allocation are based upon this geographical structure. Zions Bank operates 100 branches in Utah and 26 branches in Idaho. CB&T operates 97 branches in California. Amegy operates 84 branches in Texas. NBAZ operates 72 branches in Arizona. NSB operates 51 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.

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. The Parent’s operations are significant to the Other segment. Net interest income is substantially affected by the Parent’s interest on long-term debt. Net impairment losses on investment securities relate to the Parent. 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, 2013 and 2012:



(In millions)	Zions Bank						CB&T						Amegy						NBAZ						NSB
	2013			2012			2013			2012			2013			2012			2013			2012			2013		2012
CONDENSED INCOME STATEMENT
Net interest income	$	145.1		$	165.0		$	109.8		$	118.0		$	95.5		$	91.6		$	40.5		$	41.9		$	28.4	$	30.4
Provision for loan losses	(9.5		)	17.1			(3.0		)	(2.8		)	12.8			(18.3		)	(7.3		)	1.7			—		(1.2		)
Net interest income after provision for loan losses	154.6			147.9			112.8			120.8			82.7			109.9			47.8			40.2			28.4		31.6
Net impairment losses on investment securities	—			(0.1		)	—			—			—			—			—			—			—		—
Loss on sale of investment securities to Parent	—			—			—			—			—			—			—			—			—		—
Other noninterest income	47.7			52.1			20.8			19.3			37.1			38.3			8.6			7.6			11.4		8.8
Noninterest expense	119.1			123.5			75.9			85.2			75.3			86.3			35.3			37.3			32.0		31.3
Income (loss) before income taxes	83.2			76.4			57.7			54.9			44.5			61.9			21.1			10.5			7.8		9.1
Income tax expense (benefit)	30.2			27.4			23.0			21.8			14.9			20.8			7.7			3.4			2.6		3.1
Net income (loss)	$	53.0		$	49.0		$	34.7		$	33.1		$	29.6		$	41.1		$	13.4		$	7.1		$	5.2	$	6.0
AVERAGE BALANCE SHEET DATA
Total assets	$	18,237		$	17,641		$	10,869		$	11,000		$	13,453		$	12,231		$	4,624		$	4,447		$	4,022	$	4,085
Cash and due from banks	339			359			164			168			255			259			70			70			87		83
Money market investments	3,868			2,725			1,288			1,296			2,823			2,446			444			482			883		936
Total securities	1,287			1,331			321			362			285			313			320			274			785		774
Total loans	12,271			12,566			8,328			8,332			8,981			8,073			3,600			3,402			2,158		2,156
Total deposits	15,951			15,140			9,261			9,404			11,024			9,805			3,945			3,766			3,600		3,597
Shareholder’s equity:
Preferred equity	280			444			162			184			248			330			153			198			90		180
Common equity	1,530			1,441			1,326			1,307			1,805			1,689			410			379			310		286
Noncontrolling interests	—			—			—			—			—			—			—			—			—		—
Total shareholder’s equity	1,810			1,885			1,488			1,491			2,053			2,019			563			577			400		466
	Vectra						TCBW						Other						Consolidated Company
	2013			2012			2013			2012			2013			2012			2013			2012
CONDENSED INCOME STATEMENT
Net interest income	$	25.8		$	27.3		$	7.0		$	6.9		$	(36.6	)	$	(42.9	)	$	415.5		$	438.2
Provision for loan losses	1.8			2.2			(0.3		)	(0.6		)	(0.1		)	—			(5.6		)	(1.9		)
Net interest income after provision for loan losses	24.0			25.1			7.3			7.5			(36.5		)	(42.9		)	421.1			440.1
Net impairment losses on investment securities	—			—			—			—			(9.1		)	(2.7		)	(9.1		)	(2.8		)
Loss on sale of investment securities to Parent	—			—			(2.7		)	—			2.7			—			—			—
Other noninterest income	6.5			7.6			1.0			1.0			(1.8		)	(6.7		)	131.3			128.0
Noninterest expense	24.4			23.4			4.8			4.9			3.9			3.1			370.7			395.0
Income (loss) before income taxes	6.1			9.3			0.8			3.6			(48.6		)	(55.4		)	172.6			170.3
Income tax expense (benefit)	2.1			3.2			0.3			1.2			(19.7		)	(20.2		)	61.1			60.7
Net income (loss)	$	4.0		$	6.1		$	0.5		$	2.4		$	(28.9	)	$	(35.2	)	$	111.5		$	109.6
AVERAGE BALANCE SHEET DATA
Total assets	$	2,630		$	2,441		$	882		$	863		$	798		$	659		$	55,515		$	53,367
Cash and due from banks	48			54			19			20			(6		)	(13		)	976			1,000
Money market investments	127			47			121			158			(100		)	(100		)	9,454			7,990
Total securities	184			207			101			115			592			449			3,875			3,825
Total loans	2,195			2,046			627			556			64			68			38,224			37,199
Total deposits	2,258			2,085			743			722			(1,194		)	(1,041		)	45,588			43,478
Shareholder’s equity:
Preferred equity	70			70			3			2			680			357			1,686			1,765
Common equity	241			214			86			80			(518		)	(637		)	5,190			4,759
Noncontrolling interests	—			—			—			—			—			(3		)	—			(3		)
Total shareholder’s equity	311			284			89			82			162			(283		)	6,876			6,521

The following table presents selected operating segment information for the nine months ended September 30, 2013 and 2012:



(In millions)	Zions Bank						CB&T						Amegy						NBAZ						NSB
	2013			2012			2013			2012			2013			2012			2013			2012			2013			2012
CONDENSED INCOME STATEMENT
Net interest income	$	447.4		$	498.7		$	347.0		$	352.4		$	284.9		$	278.5		$	122.4		$	125.3		$	84.4		$	92.6
Provision for loan losses	(18.4		)	78.0			(12.8		)	(9.5		)	4.7			(50.5		)	(12.0		)	10.7			(8.9		)	(9.5		)
Net interest income after provision for loan losses	465.8			420.7			359.8			361.9			280.2			329.0			134.4			114.6			93.3			102.1
Net impairment losses on investment securities	—			(0.3		)	—			—			—			—			—			—			—			—
Loss on sale of investment securities to Parent	—			—			—			(9.2		)	—			—			—			—			—			—
Other noninterest income	152.2			163.5			62.1			57.5			111.0			115.0			25.6			23.2			30.0			25.3
Noninterest expense	362.1			371.0			260.7			250.8			251.4			255.1			104.9			113.2			97.9			101.0
Income (loss) before income taxes	255.9			212.9			161.2			159.4			139.8			188.9			55.1			24.6			25.4			26.4
Income tax expense (benefit)	93.3			75.5			63.7			63.1			46.8			62.9			20.5			8.9			8.6			9.1
Net income (loss)	$	162.6		$	137.4		$	97.5		$	96.3		$	93.0		$	126.0		$	34.6		$	15.7		$	16.8		$	17.3
AVERAGE BALANCE SHEET DATA
Total assets	$	17,609		$	17,410		$	10,871		$	10,905		$	13,122		$	12,116		$	4,612		$	4,457		$	4,046		$	4,127
Cash and due from banks	347			367			168			176			283			293			70			70			85			87
Money market investments	3,113			2,507			1,284			1,175			2,563			2,357			452			569			944			960
Total securities	1,279			1,380			333			350			336			331			298			276			769			770
Total loans	12,330			12,501			8,297			8,342			8,790			8,012			3,588			3,321			2,127			2,176
Total deposits	15,314			14,887			9,267			9,246			10,707			9,625			3,919			3,732			3,606			3,597
Shareholder’s equity:
Preferred equity	280			468			162			231			250			409			171			259			114			227
Common equity	1,524			1,419			1,324			1,293			1,775			1,665			406			363			304			280
Noncontrolling interests	—			—			—			—			—			—			—			—			—			—
Total shareholder’s equity	1,804			1,887			1,486			1,524			2,025			2,074			577			622			418			507
	Vectra						TCBW						Other						Consolidated Company
	2013			2012			2013			2012			2013			2012			2013			2012
CONDENSED INCOME STATEMENT
Net interest income	$	76.5		$	81.5		$	20.3		$	20.9		$	(118.6	)	$	(147.9	)	$	1,264.3		$	1,302.0
Provision for loan losses	(7.6		)	4.6			(1.1		)	0.8			(0.5		)	—			(56.6		)	24.6
Net interest income after provision for loan losses	84.1			76.9			21.4			20.1			(118.1		)	(147.9		)	1,320.9			1,277.4
Net impairment losses on investment securities	—			—			—			—			(23.4		)	(20.0		)	(23.4		)	(20.3		)
Loss on sale of investment securities to Parent	—			—			(2.7		)	—			2.7			9.2			—			—
Other noninterest income	19.6			18.7			3.0			2.8			(11.6		)	(20.0		)	391.9			386.0
Noninterest expense	75.0			73.0			13.6			13.9			54.1			11.0			1,219.7			1,189.0
Income (loss) before income taxes	28.7			22.6			8.1			9.0			(204.5		)	(189.7		)	469.7			454.1
Income tax expense (benefit)	10.0			7.5			2.8			3.0			(80.9		)	(66.4		)	164.8			163.6
Net income (loss)	$	18.7		$	15.1		$	5.3		$	6.0		$	(123.6	)	$	(123.3	)	$	304.9		$	290.5
AVERAGE BALANCE SHEET DATA
Total assets	$	2,541		$	2,395		$	866		$	877		$	1,019		$	660		$	54,686		$	52,947
Cash and due from banks	50			52			19			20			(9		)	(16		)	1,013			1,049
Money market investments	84			49			135			168			169			(98		)	8,744			7,687
Total securities	184			217			103			119			551			444			3,853			3,887
Total loans	2,142			1,991			596			556			63			68			37,933			36,967
Total deposits	2,177			2,047			727			730			(718		)	(932		)	44,999			42,932
Shareholder’s equity:
Preferred equity	70			70			3			10			429			309			1,479			1,983
Common equity	235			208			84			78			(557		)	(600		)	5,095			4,706
Noncontrolling interests	—			—			—			—			(2		)	(3		)	(2		)	(3		)
Total shareholder’s equity	305			278			87			88			(130		)	(294		)	6,572			6,686