Operating Segment Information (Tables)

6 Months Ended

Jun. 30, 2017

Segment Reporting Information [Line Items]


.	OPERATING SEGMENT INFORMATION

We manage our operations and prepare management reports and other information with a primary focus on geographical area. Our banking operations are managed under their own individual brand names, including Zions Bank, Amegy Bank, California Bank & Trust, National Bank of Arizona, Nevada State Bank, Vectra Bank Colorado, and The Commerce Bank of Washington. Performance assessment and resource allocation are based upon this geographical structure. We use an internal funds transfer pricing (“FTP”) allocation system to report results of operations for business segments. This process continues to be refined. Total average loans and deposits presented for the banking segments do not include intercompany amounts between banking segments, but may include deposits with the Other segment. Prior period amounts have been reclassified to reflect these changes.

As of June 30, 2017, Zions Bank operates 99 branches in Utah, 23 branches in Idaho, and one branch in Wyoming. Amegy operates 73 branches in Texas. CB&T operates 92 branches in California. NBAZ operates 58 branches in Arizona. NSB operates 50 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.

The operating segment identified as “Other” includes the Parent, Zions Management Services Company, certain nonbank financial service subsidiaries, centralized back-office functions, and eliminations of transactions between segments. The major components of net interest income at the Bank’s back office include the revenue associated with the investments securities portfolio and the offset of the FTP costs and benefits provided to the business segments. Throughout 2016 consolidation efforts continued, which resulted in transitioning full-time equivalents from the business segments to the Company’s back-office units. Due to the continuing nature and timing of this change, the Company’s back-office units retained more direct expenses in 2016 than in prior years. In the first quarter of 2017 we made changes to the FTP process and internal allocation of central expenses to better reflect the performance of business segments. Prior period amounts have been revised to reflect the impact of these changes had they been instituted in 2016.

The following schedule does not present total assets or income tax expense for each operating segment, but instead presents average loans, average deposits and income before income taxes because these are the metrics that management uses when evaluating performance and making decisions pertaining to the operating segments. The Parent’s net interest income includes interest expense on other borrowed funds. The condensed statement of income identifies the components of income and expense which affect the operating amounts presented in the Other segment.

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.

The following schedule presents selected operating segment information for the three months ended June 30, 2017 and 2016:



(In millions)	Zions Bank						Amegy				CB&T						NBAZ					NSB
	2017			2016			2017		2016		2017			2016			2017			2016		2017		2016
SELECTED INCOME STATEMENT DATA
Net interest income	$	164		$	154		$	124	$	117	$	123		$	110		$	51		$	47	$	33	$	30
Provision for loan losses	(2		)	—			7		31		(1		)	4			(1		)	—		—		1
Net interest income after provision for loan losses	166			154			117		86		124			106			52			47		33		29
Noninterest income	37			37			30		28		19			16			10			10		10		10
Noninterest expense	111			115			89		83		76			73			36			38		35		36
Income (loss) before income taxes	$	92		$	76		$	58	$	31	$	67		$	49		$	26		$	19	$	8	$	3
SELECTED AVERAGE BALANCE SHEET DATA
Total loans	$	12,483		$	12,600		$	10,856	$	10,761	$	9,476		$	9,260		$	4,246		$	4,008	$	2,372	$	2,274
Total deposits	15,987			15,977			11,218		10,959		10,917			10,882			4,762			4,582		4,233		4,103
(In millions)	Vectra						TCBW				Other						Consolidated Company
	2017			2016			2017		2016		2017			2016			2017			2016
SELECTED INCOME STATEMENT DATA
Net interest income	$	32		$	29		$	11	$	9	$	(10	)	$	(31	)	$	528		$	465
Provision for loan losses	3			(3		)	—		1		1			1			7			35
Net interest income after provision for loan losses	29			32			11		8		(11		)	(32		)	521			430
Noninterest income	7			6			1		1		18			18			132			126
Noninterest expense	25			25			5		5		28			7			405			382
Income (loss) before income taxes	$	11		$	13		$	7	$	4	$	(21	)	$	(21	)	$	248		$	174
SELECTED AVERAGE BALANCE SHEET DATA
Total loans	$	2,603		$	2,415		$	911	$	777	$	296		$	13		$	43,243		$	42,108
Total deposits	2,728			2,667			1,094		947		1,395			(167		)	52,334			49,950

The following schedule presents selected operating segment information for the six months ended June 30, 2017 and 2016:



(In millions)	Zions Bank					Amegy						CB&T						NBAZ				NSB
	2017		2016			2017			2016			2017			2016			2017		2016		2017			2016
SELECTED INCOME STATEMENT DATA
Net interest income	$	319	$	304		$	238		$	230		$	233		$	213		$	100	$	92	$	65		$	60
Provision for loan losses	33		(30		)	8			135			(6		)	1			1		2		(5		)	(25		)
Net interest income after provision for loan losses	286		334			230			95			239			212			99		90		70			85
Noninterest income	72		73			59			57			36			32			20		20		20			19
Noninterest expense	224		221			173			168			151			145			73		72		70			69
Income (loss) before income taxes	$	134	$	186		$	116		$	(16	)	$	124		$	99		$	46	$	38	$	20		$	35
SELECTED AVERAGE BALANCE SHEET DATA
Total loans	$	12,486	$	12,453		$	10,747		$	10,566		$	9,391		$	9,083		$	4,254	$	3,936	$	2,355		$	2,269
Total deposits	16,127		15,839			11,268			11,116			10,919			10,681			4,712		4,513		4,222			4,057
(In millions)	Vectra					TCBW						Other						Consolidated Company
	2017		2016			2017			2016			2017			2016			2017		2016
SELECTED INCOME STATEMENT DATA
Net interest income	$	61	$	59		$	22		$	18		$	(21	)	$	(58	)	$	1,017	$	918
Provision for loan losses	—		(6		)	(1		)	—			—			—			30		77
Net interest income after provision for loan losses	61		65			23			18			(21		)	(58		)	987		841
Noninterest income	12		11			2			2			43			28			264		242
Noninterest expense	50		48			10			10			68			44			819		777
Income (loss) before income taxes	$	23	$	28		$	15		$	10		$	(46	)	$	(74	)	$	432	$	306
SELECTED AVERAGE BALANCE SHEET DATA
Total loans	$	2,569	$	2,434		$	894		$	755		$	210		$	60		$	42,906	$	41,556
Total deposits	2,759		2,725			1,097			950			1,170			(129		)	52,274		49,752

Schedule of Segment Reporting Information, by Segment



(In millions)	Zions Bank						Amegy				CB&T						NBAZ					NSB
	2017			2016			2017		2016		2017			2016			2017			2016		2017		2016
SELECTED INCOME STATEMENT DATA
Net interest income	$	164		$	154		$	124	$	117	$	123		$	110		$	51		$	47	$	33	$	30
Provision for loan losses	(2		)	—			7		31		(1		)	4			(1		)	—		—		1
Net interest income after provision for loan losses	166			154			117		86		124			106			52			47		33		29
Noninterest income	37			37			30		28		19			16			10			10		10		10
Noninterest expense	111			115			89		83		76			73			36			38		35		36
Income (loss) before income taxes	$	92		$	76		$	58	$	31	$	67		$	49		$	26		$	19	$	8	$	3
SELECTED AVERAGE BALANCE SHEET DATA
Total loans	$	12,483		$	12,600		$	10,856	$	10,761	$	9,476		$	9,260		$	4,246		$	4,008	$	2,372	$	2,274
Total deposits	15,987			15,977			11,218		10,959		10,917			10,882			4,762			4,582		4,233		4,103
(In millions)	Vectra						TCBW				Other						Consolidated Company
	2017			2016			2017		2016		2017			2016			2017			2016
SELECTED INCOME STATEMENT DATA
Net interest income	$	32		$	29		$	11	$	9	$	(10	)	$	(31	)	$	528		$	465
Provision for loan losses	3			(3		)	—		1		1			1			7			35
Net interest income after provision for loan losses	29			32			11		8		(11		)	(32		)	521			430
Noninterest income	7			6			1		1		18			18			132			126
Noninterest expense	25			25			5		5		28			7			405			382
Income (loss) before income taxes	$	11		$	13		$	7	$	4	$	(21	)	$	(21	)	$	248		$	174
SELECTED AVERAGE BALANCE SHEET DATA
Total loans	$	2,603		$	2,415		$	911	$	777	$	296		$	13		$	43,243		$	42,108
Total deposits	2,728			2,667			1,094		947		1,395			(167		)	52,334			49,950

The following schedule presents selected operating segment information for the six months ended June 30, 2017 and 2016:



(In millions)	Zions Bank					Amegy						CB&T						NBAZ				NSB
	2017		2016			2017			2016			2017			2016			2017		2016		2017			2016
SELECTED INCOME STATEMENT DATA
Net interest income	$	319	$	304		$	238		$	230		$	233		$	213		$	100	$	92	$	65		$	60
Provision for loan losses	33		(30		)	8			135			(6		)	1			1		2		(5		)	(25		)
Net interest income after provision for loan losses	286		334			230			95			239			212			99		90		70			85
Noninterest income	72		73			59			57			36			32			20		20		20			19
Noninterest expense	224		221			173			168			151			145			73		72		70			69
Income (loss) before income taxes	$	134	$	186		$	116		$	(16	)	$	124		$	99		$	46	$	38	$	20		$	35
SELECTED AVERAGE BALANCE SHEET DATA
Total loans	$	12,486	$	12,453		$	10,747		$	10,566		$	9,391		$	9,083		$	4,254	$	3,936	$	2,355		$	2,269
Total deposits	16,127		15,839			11,268			11,116			10,919			10,681			4,712		4,513		4,222			4,057
(In millions)	Vectra					TCBW						Other						Consolidated Company
	2017		2016			2017			2016			2017			2016			2017		2016
SELECTED INCOME STATEMENT DATA
Net interest income	$	61	$	59		$	22		$	18		$	(21	)	$	(58	)	$	1,017	$	918
Provision for loan losses	—		(6		)	(1		)	—			—			—			30		77
Net interest income after provision for loan losses	61		65			23			18			(21		)	(58		)	987		841
Noninterest income	12		11			2			2			43			28			264		242
Noninterest expense	50		48			10			10			68			44			819		777
Income (loss) before income taxes	$	23	$	28		$	15		$	10		$	(46	)	$	(74	)	$	432	$	306
SELECTED AVERAGE BALANCE SHEET DATA
Total loans	$	2,569	$	2,434		$	894		$	755		$	210		$	60		$	42,906	$	41,556
Total deposits	2,759		2,725			1,097			950			1,170			(129		)	52,274		49,752