Operating Segment Information (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting Information [Line Items]

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, 2015, we operate seven community/regional banks in distinct geographical areas. Performance assessment and resource allocation are based upon this geographical structure. Zions Bank operates 99 branches in Utah, 24 branches in Idaho, and one branch in Wyoming. Amegy operates 77 branches in Texas. CB&T operates 94 branches in California. NBAZ operates 66 branches in Arizona. NSB operates 49 branches in Nevada. Vectra operates 36 branches in Colorado and one branch in New Mexico. TCBW operates one branch in Washington and one branch in Oregon. Effective April 1, 2015, TCBO was merged into TCBW. Note 1 discusses the approval to merge the Company’s seven subsidiary banks into Zions Bank following the close of business on December 31, 2015. This consolidation will affect the presentation of segment reporting, although certain geographical information will continue.

The operating segment identified as “Other” includes the Parent, Zions Management Services Company (“ZMSC”), certain nonbank financial service subsidiaries, 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. 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 schedule presents selected operating segment information for the three months ended September 30, 2015 and 2014:

(In millions)	Zions Bank						Amegy						CB&T						NBAZ						NSB
	2015			2014			2015			2014			2015			2014			2015			2014			2015			2014
CONDENSED INCOME STATEMENT
Net interest income	$	145.9		$	146.7		$	99.9		$	95.8		$	95.0		$	98.9		$	40.4		$	40.3		$	27.6		$	28.4
Provision for loan losses	(5.7		)	(27.7		)	31.8			(3.5		)	1.1			(10.1		)	(2.4		)	(4.5		)	(3.7		)	(4.9		)
Net interest income after provision for loan losses	151.6			174.4			68.1			99.3			93.9			109.0			42.8			44.8			31.3			33.3
Noninterest income	50.4			44.8			33.4			39.4			18.6			17.5			9.9			9.6			9.4			9.6
Noninterest expense	128.8			123.4			90.2			79.1			70.6			77.1			35.8			33.2			32.3			31.8
Income before income taxes	73.2			95.8			11.3			59.6			41.9			49.4			16.9			21.2			8.4			11.1
Income taxes (benefit)	26.4			35.4			3.5			20.4			16.4			19.1			2.6			7.9			2.8			3.7
Net income (loss)	46.8			60.4			7.8			39.2			25.5			30.3			14.3			13.3			5.6			7.4
Net income (loss) applicable to noncontrolling interests	0.6			—			—			—			—			—			—			—			—			—
Net income (loss) applicable to controlling interest	$	46.2		$	60.4		$	7.8		$	39.2		$	25.5		$	30.3		$	14.3		$	13.3		$	5.6		$	7.4
AVERAGE BALANCE SHEET DATA
Total assets	$	18,437		$	18,083		$	13,901		$	13,861		$	11,846		$	11,252		$	5,018		$	4,710		$	4,354		$	4,074
Cash and due from banks	241			322			101			172			88			134			43			70			70			94
Money market investments	2,064			3,083			2,230			2,555			1,944			1,577			441			401			961			741
Total securities	3,211			1,814			319			266			538			258			535			380			864			799
Total loans	12,200			12,312			10,078			9,721			8,532			8,520			3,799			3,660			2,321			2,318
Total deposits	15,944			15,827			11,411			11,382			10,181			9,592			4,360			4,081			3,951			3,670
Shareholder’s equity:
Preferred equity	280			280			226			226			162			162			85			85			50			50
Common equity	1,689			1,578			1,967			1,903			1,415			1,386			500			465			326			330
Noncontrolling interests	17			—			—			—			—			—			—			—			—			—
Total shareholder’s equity	1,986			1,858			2,193			2,129			1,577			1,548			585			550			376			380
	Vectra						TCBW						Other						Consolidated Company
	2015			2014			2015			2014			2015			2014			2015			2014
CONDENSED INCOME STATEMENT
Net interest income	$	25.5		$	25.4		$	7.5		$	8.3		$	(16.4	)	$	(27.1	)	$	425.4		$	416.7
Provision for loan losses	(1.6		)	(3.2		)	(1.2		)	(0.7		)	—			(0.1		)	18.3			(54.7		)
Net interest income after provision for loan losses	27.1			28.6			8.7			9.0			(16.4		)	(27.0		)	407.1			471.4
Noninterest income	5.8			6.0			1.1			1.1			2.2			(12.0		)	130.8			116.0
Noninterest expense	24.7			24.2			5.3			5.7			8.4			64.0			396.1			438.5
Income (loss) before income taxes	8.2			10.4			4.5			4.4			(22.6		)	(103.0		)	141.8			148.9
Income taxes (benefit)	2.7			3.6			1.5			1.5			(15.1		)	(38.5		)	40.8			53.1
Net income (loss)	5.5			6.8			3.0			2.9			(7.5		)	(64.5		)	101.0			95.8
Net income (loss) applicable to noncontrolling interests	—			—			—			—			(0.6		)	—			—			—
Net income (loss) applicable to controlling interest	$	5.5		$	6.8		$	3.0		$	2.9		$	(6.9	)	$	(64.5	)	$	101.0		$	95.8
AVERAGE BALANCE SHEET DATA
Total assets	$	3,246		$	2,751		$	1,058		$	977		$	546		$	420		$	58,406		$	56,128
Cash and due from banks	26			41			29			34			(14		)	(9		)	584			858
Money market investments	514			174			227			140			395			(178		)	8,776			8,493
Total securities	247			152			86			78			56			300			5,856			4,047
Total loans	2,397			2,319			702			712			(4		)	5			40,025			39,567
Total deposits	2,834			2,339			906			827			(668		)	(1,427		)	48,919			46,291
Shareholder’s equity:
Preferred equity	25			26			3			3			173			172			1,004			1,004
Common equity	324			307			111			107			324			145			6,656			6,221
Noncontrolling interests	—			—			—			—			(17		)	—			—			—
Total shareholder’s equity	349			333			114			110			480			317			7,660			7,225

The following schedule presents selected operating segment information for the nine months ended September 30, 2015 and 2014:

(In millions)	Zions Bank						Amegy						CB&T						NBAZ					NSB
	2015			2014			2015			2014			2015			2014			2015		2014			2015			2014
CONDENSED INCOME STATEMENT
Net interest income	$	431.2		$	434.8		$	291.6		$	285.9		$	289.4		$	311.8		$	119.7	$	120.9		$	83.9		$	84.6
Provision for loan losses	(18.7		)	(51.8		)	56.9			5.9			(6.5		)	(25.1		)	1.0		(15.5		)	(15.4		)	(13.2		)
Net interest income after provision for loan losses	449.9			486.6			234.7			280.0			295.9			336.9			118.7		136.4			99.3			97.8
Noninterest income 1	90.6			139.0			101.2			107.7			56.5			37.1			29.2		26.2			26.8			23.4
Noninterest expense	385.5			366.0			280.9			258.6			224.4			244.8			109.5		109.4			98.0			97.9
Income before income taxes	155.0			259.6			55.0			129.1			128.0			129.2			38.4		53.2			28.1			23.3
Income taxes (benefit)	54.4			95.4			17.2			43.6			50.0			50.2			10.0		19.7			9.4			7.7
Net income (loss)	100.6			164.2			37.8			85.5			78.0			79.0			28.4		33.5			18.7			15.6
Net income (loss) applicable to noncontrolling interests	2.0			—			—			—			—			—			—		—			—			—
Net income (loss) applicable to controlling interest	$	98.6		$	164.2		$	37.8		$	85.5		$	78.0		$	79.0		$	28.4	$	33.5		$	18.7		$	15.6
AVERAGE BALANCE SHEET DATA
Total assets	$	18,628		$	17,983		$	13,846		$	13,650		$	11,578		$	11,063		$	4,929	$	4,673		$	4,277		$	4,046
Cash and due from banks	263			332			127			235			88			152			45		72			72			88
Money market investments	2,664			3,101			2,086			2,498			1,794			1,321			413		368			861			735
Total securities	2,827			1,720			295			256			434			274			466		372			854			789
Total loans	12,184			12,292			10,170			9,550			8,502			8,571			3,803		3,668			2,354			2,314
Total deposits	16,186			15,709			11,362			11,217			9,917			9,421			4,277		4,016			3,870			3,648
Shareholder’s equity:
Preferred equity	280			280			226			202			162			162			85		101			50			50
Common equity	1,654			1,556			1,953			1,875			1,405			1,368			492		447			330			324
Noncontrolling interests	13			—			—			—			—			—			—		—			—			—
Total shareholder’s equity	1,947			1,836			2,179			2,077			1,567			1,530			577		548			380			374
	Vectra						TCBW						Other						Consolidated Company
	2015			2014			2015			2014			2015			2014			2015		2014
CONDENSED INCOME STATEMENT
Net interest income	$	77.6		$	76.1		$	22.6		$	24.0		$	(49.6	)	$	(88.6	)	$	1,266.4	$	1,249.5
Provision for loan losses	1.9			(9.5		)	(1.8		)	(0.4		)	(0.1		)	(0.1		)	17.3		(109.7		)
Net interest income after provision for loan losses	75.7			85.6			24.4			24.4			(49.5		)	(88.5		)	1,249.1		1,359.2
Noninterest income 1	15.6			15.7			3.3			1.4			(70.1		)	28.7			253.1		379.2
Noninterest expense	73.0			73.2			11.6			17.1			14.8			75.6			1,197.7		1,242.6
Income (loss) before income taxes	18.3			28.1			16.1			8.7			(134.4		)	(135.4		)	304.5		495.8
Income taxes (benefit)	5.8			9.7			5.5			3.0			(54.8		)	(50.1		)	97.5		179.2
Net income (loss)	12.5			18.4			10.6			5.7			(79.6		)	(85.3		)	207.0		316.6
Net income (loss) applicable to noncontrolling interests	—			—			—			—			(2.0		)	—			—		—
Net income (loss) applicable to controlling interest	$	12.5		$	18.4		$	10.6		$	5.7		$	(77.6	)	$	(85.3	)	$	207.0	$	316.6
AVERAGE BALANCE SHEET DATA
Total assets	$	3,154		$	2,639		$	1,007		$	957		$	154		$	524		$	57,573	$	55,535
Cash and due from banks	28			45			33			28			(17		)	(14		)	639		938
Money market investments	459			70			166			122			(39		)	(168		)	8,404		8,047
Total securities	221			158			82			84			120			409			5,299		4,062
Total loans	2,385			2,305			712			710			1			4			40,111		39,414
Total deposits	2,745			2,231			863			809			(1,039		)	(1,205		)	48,181		45,846
Shareholder’s equity:
Preferred equity	25			46			3			3			173			160			1,004		1,004
Common equity	320			279			107			105			258			(98		)	6,519		5,856
Noncontrolling interests	—			—			—			—			(13		)	—			—		—
Total shareholder’s equity	345			325			110			108			418			62			7,523		6,860

¹  Includes loss on sale of CDOs in the second quarter of 2015 of (in millions) $62.5 (Zions Bank), $0.6 (NSB), $0.6 (Vectra) and $73.1 (Other).

Schedule of Segment Reporting Information, by Segment

(In millions)	Zions Bank						Amegy						CB&T						NBAZ						NSB
	2015			2014			2015			2014			2015			2014			2015			2014			2015			2014
CONDENSED INCOME STATEMENT
Net interest income	$	145.9		$	146.7		$	99.9		$	95.8		$	95.0		$	98.9		$	40.4		$	40.3		$	27.6		$	28.4
Provision for loan losses	(5.7		)	(27.7		)	31.8			(3.5		)	1.1			(10.1		)	(2.4		)	(4.5		)	(3.7		)	(4.9		)
Net interest income after provision for loan losses	151.6			174.4			68.1			99.3			93.9			109.0			42.8			44.8			31.3			33.3
Noninterest income	50.4			44.8			33.4			39.4			18.6			17.5			9.9			9.6			9.4			9.6
Noninterest expense	128.8			123.4			90.2			79.1			70.6			77.1			35.8			33.2			32.3			31.8
Income before income taxes	73.2			95.8			11.3			59.6			41.9			49.4			16.9			21.2			8.4			11.1
Income taxes (benefit)	26.4			35.4			3.5			20.4			16.4			19.1			2.6			7.9			2.8			3.7
Net income (loss)	46.8			60.4			7.8			39.2			25.5			30.3			14.3			13.3			5.6			7.4
Net income (loss) applicable to noncontrolling interests	0.6			—			—			—			—			—			—			—			—			—
Net income (loss) applicable to controlling interest	$	46.2		$	60.4		$	7.8		$	39.2		$	25.5		$	30.3		$	14.3		$	13.3		$	5.6		$	7.4
AVERAGE BALANCE SHEET DATA
Total assets	$	18,437		$	18,083		$	13,901		$	13,861		$	11,846		$	11,252		$	5,018		$	4,710		$	4,354		$	4,074
Cash and due from banks	241			322			101			172			88			134			43			70			70			94
Money market investments	2,064			3,083			2,230			2,555			1,944			1,577			441			401			961			741
Total securities	3,211			1,814			319			266			538			258			535			380			864			799
Total loans	12,200			12,312			10,078			9,721			8,532			8,520			3,799			3,660			2,321			2,318
Total deposits	15,944			15,827			11,411			11,382			10,181			9,592			4,360			4,081			3,951			3,670
Shareholder’s equity:
Preferred equity	280			280			226			226			162			162			85			85			50			50
Common equity	1,689			1,578			1,967			1,903			1,415			1,386			500			465			326			330
Noncontrolling interests	17			—			—			—			—			—			—			—			—			—
Total shareholder’s equity	1,986			1,858			2,193			2,129			1,577			1,548			585			550			376			380
	Vectra						TCBW						Other						Consolidated Company
	2015			2014			2015			2014			2015			2014			2015			2014
CONDENSED INCOME STATEMENT
Net interest income	$	25.5		$	25.4		$	7.5		$	8.3		$	(16.4	)	$	(27.1	)	$	425.4		$	416.7
Provision for loan losses	(1.6		)	(3.2		)	(1.2		)	(0.7		)	—			(0.1		)	18.3			(54.7		)
Net interest income after provision for loan losses	27.1			28.6			8.7			9.0			(16.4		)	(27.0		)	407.1			471.4
Noninterest income	5.8			6.0			1.1			1.1			2.2			(12.0		)	130.8			116.0
Noninterest expense	24.7			24.2			5.3			5.7			8.4			64.0			396.1			438.5
Income (loss) before income taxes	8.2			10.4			4.5			4.4			(22.6		)	(103.0		)	141.8			148.9
Income taxes (benefit)	2.7			3.6			1.5			1.5			(15.1		)	(38.5		)	40.8			53.1
Net income (loss)	5.5			6.8			3.0			2.9			(7.5		)	(64.5		)	101.0			95.8
Net income (loss) applicable to noncontrolling interests	—			—			—			—			(0.6		)	—			—			—
Net income (loss) applicable to controlling interest	$	5.5		$	6.8		$	3.0		$	2.9		$	(6.9	)	$	(64.5	)	$	101.0		$	95.8
AVERAGE BALANCE SHEET DATA
Total assets	$	3,246		$	2,751		$	1,058		$	977		$	546		$	420		$	58,406		$	56,128
Cash and due from banks	26			41			29			34			(14		)	(9		)	584			858
Money market investments	514			174			227			140			395			(178		)	8,776			8,493
Total securities	247			152			86			78			56			300			5,856			4,047
Total loans	2,397			2,319			702			712			(4		)	5			40,025			39,567
Total deposits	2,834			2,339			906			827			(668		)	(1,427		)	48,919			46,291
Shareholder’s equity:
Preferred equity	25			26			3			3			173			172			1,004			1,004
Common equity	324			307			111			107			324			145			6,656			6,221
Noncontrolling interests	—			—			—			—			(17		)	—			—			—
Total shareholder’s equity	349			333			114			110			480			317			7,660			7,225

The following schedule presents selected operating segment information for the nine months ended September 30, 2015 and 2014:

(In millions)	Zions Bank						Amegy						CB&T						NBAZ					NSB
	2015			2014			2015			2014			2015			2014			2015		2014			2015			2014
CONDENSED INCOME STATEMENT
Net interest income	$	431.2		$	434.8		$	291.6		$	285.9		$	289.4		$	311.8		$	119.7	$	120.9		$	83.9		$	84.6
Provision for loan losses	(18.7		)	(51.8		)	56.9			5.9			(6.5		)	(25.1		)	1.0		(15.5		)	(15.4		)	(13.2		)
Net interest income after provision for loan losses	449.9			486.6			234.7			280.0			295.9			336.9			118.7		136.4			99.3			97.8
Noninterest income 1	90.6			139.0			101.2			107.7			56.5			37.1			29.2		26.2			26.8			23.4
Noninterest expense	385.5			366.0			280.9			258.6			224.4			244.8			109.5		109.4			98.0			97.9
Income before income taxes	155.0			259.6			55.0			129.1			128.0			129.2			38.4		53.2			28.1			23.3
Income taxes (benefit)	54.4			95.4			17.2			43.6			50.0			50.2			10.0		19.7			9.4			7.7
Net income (loss)	100.6			164.2			37.8			85.5			78.0			79.0			28.4		33.5			18.7			15.6
Net income (loss) applicable to noncontrolling interests	2.0			—			—			—			—			—			—		—			—			—
Net income (loss) applicable to controlling interest	$	98.6		$	164.2		$	37.8		$	85.5		$	78.0		$	79.0		$	28.4	$	33.5		$	18.7		$	15.6
AVERAGE BALANCE SHEET DATA
Total assets	$	18,628		$	17,983		$	13,846		$	13,650		$	11,578		$	11,063		$	4,929	$	4,673		$	4,277		$	4,046
Cash and due from banks	263			332			127			235			88			152			45		72			72			88
Money market investments	2,664			3,101			2,086			2,498			1,794			1,321			413		368			861			735
Total securities	2,827			1,720			295			256			434			274			466		372			854			789
Total loans	12,184			12,292			10,170			9,550			8,502			8,571			3,803		3,668			2,354			2,314
Total deposits	16,186			15,709			11,362			11,217			9,917			9,421			4,277		4,016			3,870			3,648
Shareholder’s equity:
Preferred equity	280			280			226			202			162			162			85		101			50			50
Common equity	1,654			1,556			1,953			1,875			1,405			1,368			492		447			330			324
Noncontrolling interests	13			—			—			—			—			—			—		—			—			—
Total shareholder’s equity	1,947			1,836			2,179			2,077			1,567			1,530			577		548			380			374
	Vectra						TCBW						Other						Consolidated Company
	2015			2014			2015			2014			2015			2014			2015		2014
CONDENSED INCOME STATEMENT
Net interest income	$	77.6		$	76.1		$	22.6		$	24.0		$	(49.6	)	$	(88.6	)	$	1,266.4	$	1,249.5
Provision for loan losses	1.9			(9.5		)	(1.8		)	(0.4		)	(0.1		)	(0.1		)	17.3		(109.7		)
Net interest income after provision for loan losses	75.7			85.6			24.4			24.4			(49.5		)	(88.5		)	1,249.1		1,359.2
Noninterest income 1	15.6			15.7			3.3			1.4			(70.1		)	28.7			253.1		379.2
Noninterest expense	73.0			73.2			11.6			17.1			14.8			75.6			1,197.7		1,242.6
Income (loss) before income taxes	18.3			28.1			16.1			8.7			(134.4		)	(135.4		)	304.5		495.8
Income taxes (benefit)	5.8			9.7			5.5			3.0			(54.8		)	(50.1		)	97.5		179.2
Net income (loss)	12.5			18.4			10.6			5.7			(79.6		)	(85.3		)	207.0		316.6
Net income (loss) applicable to noncontrolling interests	—			—			—			—			(2.0		)	—			—		—
Net income (loss) applicable to controlling interest	$	12.5		$	18.4		$	10.6		$	5.7		$	(77.6	)	$	(85.3	)	$	207.0	$	316.6
AVERAGE BALANCE SHEET DATA
Total assets	$	3,154		$	2,639		$	1,007		$	957		$	154		$	524		$	57,573	$	55,535
Cash and due from banks	28			45			33			28			(17		)	(14		)	639		938
Money market investments	459			70			166			122			(39		)	(168		)	8,404		8,047
Total securities	221			158			82			84			120			409			5,299		4,062
Total loans	2,385			2,305			712			710			1			4			40,111		39,414
Total deposits	2,745			2,231			863			809			(1,039		)	(1,205		)	48,181		45,846
Shareholder’s equity:
Preferred equity	25			46			3			3			173			160			1,004		1,004
Common equity	320			279			107			105			258			(98		)	6,519		5,856
Noncontrolling interests	—			—			—			—			(13		)	—			—		—
Total shareholder’s equity	345			325			110			108			418			62			7,523		6,860