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 is continually refined. Total average loans and deposits presented for the banking segments include insignificant intercompany amounts between banking segments and may also include deposits with the Other segment.

As of March 31, 2019, our banking business is conducted through 7 locally managed and branded segments in distinct geographical areas. Zions Bank operates 98 branches in Utah, 23 branches in Idaho, and one branch in Wyoming. Amegy operates 74 branches in Texas. CB&T operates 90 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 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.

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 Bank’s net interest income includes interest expense on 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 Bank. 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 March 31, 2019 and 2018:



(In millions)	Zions Bank					Amegy						CB&T
	2019		2018			2019			2018			2019		2018
SELECTED INCOME STATEMENT DATA
Net interest income	$	180	$	167		$	131		$	127		$	138	$	131
Provision for credit losses	11		(2		)	(15		)	(53		)	3		2
Net interest income after provision for loan losses	169		169			146			180			135		129
Noninterest income	33		35			34			32			19		21
Noninterest expense	118		113			88			87			82		77
Income (loss) before income taxes	$	84	$	91		$	92		$	125		$	72	$	73
SELECTED AVERAGE BALANCE SHEET DATA
Total average loans	$	12,939	$	12,453		$	11,861		$	11,370		$	10,574	$	9,929
Total average deposits	15,524		15,712			11,441			10,816			11,243		11,119

(In millions)	NBAZ					NSB						Vectra
	2019		2018			2019			2018			2019		2018
SELECTED INCOME STATEMENT DATA
Net interest income	$	60	$	53		$	40		$	35		$	36	$	32
Provision for credit losses	3		2			(1		)	—			4		3
Net interest income after provision for loan losses	57		51			41			35			32		29
Noninterest income	10		9			10			10			6		6
Noninterest expense	39		38			36			36			28		27
Income (loss) before income taxes	$	28	$	22		$	15		$	9		$	10	$	8
SELECTED AVERAGE BALANCE SHEET DATA
Total average loans	$	4,749	$	4,543		$	2,500		$	2,348		$	3,055	$	2,794
Total average deposits	4,894		4,783			4,329			4,223			2,821		2,711



(In millions)	TCBW				Other						Consolidated Bank
	2019		2018		2019			2018			2019		2018
SELECTED INCOME STATEMENT DATA
Net interest income	$	14	$	11	$	(23	)	$	(14	)	$	576	$	542
Provision for credit losses	—		1		(1		)	—			4		(47		)
Net interest income after provision for loan losses	14		10		(22		)	(14		)	572		589
Noninterest income	1		1		19			24			132		138
Noninterest expense	6		6		33			35			430		419
Income (loss) before income taxes	$	9	$	5	$	(36	)	$	(25	)	$	274	$	308
SELECTED AVERAGE BALANCE SHEET DATA
Total average loans	$	1,110	$	1,084	$	383		$	343		$	47,171	$	44,864
Total average deposits	1,075		1,073		2,589			1,557			53,916		51,994