12.	OPERATING SEGMENT INFORMATION

We manage our operations and prepare management reports and other information with a primary focus on geographical area. As of June 30, 2011, we operate eight community/regional banks in distinct geographical areas. Performance assessment and resource allocation are based upon this geographical structure. Zions Bank operates 106 branches in Utah and 27 branches in Idaho. CB&T operates 103 branches in California. Amegy operates 83 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 June 30, 2011 and 2010:


(In millions)	Zions Bank						CB&T						Amegy						NBA						NSB
	2011			2010			2011			2010			2011			2010			2011			2010			2011			2010

CONDENSED INCOME STATEMENT
Net interest income	$	176.4		$	186.0		$	128.4		$	119.3		$	98.3		$	98.8		$	43.3		$	44.6		$	35.3		$	33.9
Provision for loan losses		21.6			90.5			(5.8	)		40.6			(0.2	)		46.4			1.8			4.8			(18.2	)		34.3

Net interest income after provision for loan losses		154.8			95.5			134.2			78.7			98.5			52.4			41.5			39.8			53.5			(0.4	)
Net impairment losses on investment securities		–			–			–			–			–			–			–			–			–			–
Loss on sale of investment securities to Parent		–			–			–			–			–			–			–			–			–			–
Other noninterest income		49.6			40.9			23.8			25.5			39.3			37.1			9.5			8.3			10.1			10.4
Noninterest expense		137.2			145.8			93.1			81.5			84.1			78.6			37.0			47.8			35.7			39.5

Income (loss) before income taxes		67.2			(9.4	)		64.9			22.7			53.7			10.9			14.0			0.3			27.9			(29.5	)
Income tax expense (benefit)		23.0			(11.5	)		26.0			8.4			17.7			2.6			5.5			0.1			9.8			(10.4	)

Net income (loss)		44.2			2.1			38.9			14.3			36.0			8.3			8.5			0.2			18.1			(19.1	)
Net income (loss) applicable to noncontrolling interests		–			–			–			–			–			–			–			–			–			–

Net income (loss) applicable to controlling interest		44.2			2.1			38.9			14.3			36.0			8.3			8.5			0.2			18.1			(19.1	)
Preferred stock dividends		–			–			–			–			–			–			–			–			–			–
Preferred stock redemption		–			–			–			–			–			–			–			–			–			–

Net earnings (loss) applicable to common shareholders	$	44.2		$	2.1		$	38.9		$	14.3		$	36.0		$	8.3		$	8.5		$	0.2		$	18.1		$	(19.1	)


AVERAGE BALANCE SHEET DATA
Total assets	$	16,149		$	18,598		$	10,804		$	11,084		$	11,235		$	11,769		$	4,482		$	4,434		$	4,169		$	4,070
Net loans and leases		12,799			13,618			8,285			8,588			7,794			7,920			3,305			3,379			2,408			2,586
Total deposits		13,621			14,313			9,221			9,698			8,712			9,288			3,745			3,698			3,548			3,452
Shareholder's equity:
Preferred equity		480			480			262			262			488			487			305			305			360			360
Common equity		1,285			1,286			1,224			1,143			1,544			1,447			332			323			235			253
Noncontrolling interests		–			(1	)		–			–			–			–			–			–			–			–
Total shareholder's equity		1,765			1,765			1,486			1,405			2,032			1,934			637			628			595			613

	Vectra						TCBW						Other						Consolidated Company
	2011			2010			2011			2010			2011			2010			2011			2010

CONDENSED INCOME STATEMENT
Net interest income	$	26.0		$	27.1		$	7.6		$	7.6		$	(99.1	)	$	(104.0	)	$	416.2		$	413.3
Provision for loan losses		(1.2	)		8.3			3.2			3.8			0.1			(0.1	)		1.3			228.6

Net interest income after provision for loan losses		27.2			18.8			4.4			3.8			(99.2	)		(103.9	)		414.9			184.7
Net impairment losses on investment securities		–			(0.7	)		–			–			(5.2	)		(17.4	)		(5.2	)		(18.1	)
Loss on sale of investment securities to Parent		–			–			–			–			–			–			–			–
Other noninterest income		5.3			7.3			0.8			0.6			(4.9	)		(2.6	)		133.5			127.5
Noninterest expense		26.3			24.0			3.9			4.6			(1.0	)		8.6			416.3			430.4

Income (loss) before income taxes		6.2			1.4			1.3			(0.2	)		(108.3	)		(132.5	)		126.9			(136.3	)
Income tax expense (benefit)		2.1			0.2			0.4			(0.1	)		(30.2	)		(12.2	)		54.3			(22.9	)

Net income (loss)		4.1			1.2			0.9			(0.1	)		(78.1	)		(120.3	)		72.6			(113.4	)
Net income (loss) applicable to noncontrolling interests		–			–			–			–			(0.2	)		(0.4	)		(0.2	)		(0.4	)

Net income (loss) applicable to controlling interest		4.1			1.2			0.9			(0.1	)		(77.9	)		(119.9	)		72.8			(113.0	)
Preferred stock dividends		–			–			–			–			(43.8	)		(25.3	)		(43.8	)		(25.3	)
Preferred stock redemption		–			–			–			–			–			3.1			–			3.1

Net earnings (loss) applicable to common shareholders	$	4.1		$	1.2		$	0.9		$	(0.1	)	$	(121.7	)	$	(142.1	)	$	29.0		$	(135.2	)


AVERAGE BALANCE SHEET DATA
Total assets	$	2,245		$	2,330		$	852		$	813		$	1,056		$	(1,228	)	$	50,992		$	51,870
Net loans and leases		1,791			1,883			586			575			(128	)		62			36,840			38,611
Total deposits		1,873			1,935			671			613			(506	)		(767	)		40,885			42,230
Shareholder's equity:
Preferred equity		70			71			15			15			266			(355	)		2,246			1,625
Common equity		204			195			72			70			(298	)		(346	)		4,598			4,371
Noncontrolling interests		–			–			–			–			(1	)		17			(1	)		16
Total shareholder's equity		274			266			87			85			(33	)		(684	)		6,843			6,012

The following table presents selected operating segment information for the six months ended June 30, 2011 and 2010:


(In millions)	Zions Bank					CB& T					Amegy						NBA						NSB
	2011		2010			2011			2010		2011			2010			2011			2010			2011			2010

CONDENSED INCOME STATEMENT
Net interest income	$	349.0	$	366.3		$	257.1		$	232.7	$	191.3		$	199.2		$	86.4		$	89.8		$	68.4		$	70.0
Provision for loan losses		60.6		177.6			5.4			82.5		3.1			97.2			2.5			26.0			(17.4	)		87.0

Net interest income after provision for loan losses		288.4		188.7			251.7			150.2		188.2			102.0			83.9			63.8			85.8			(17.0	)
Net impairment losses on investment securities		–		–			–			–		–			–			–			–			–			–
Loss on sale of investment securities to Parent		–		(54.8	)		(13.5	)		–		–			–			–			–			–			–
Other noninterest income		99.1		85.1			62.2			51.8		73.3			72.4			18.0			15.8			18.7			19.8
Noninterest expense		265.6		275.1			183.4			156.8		164.0			153.4			82.1			87.5			70.3			76.0

Income (loss) before income taxes		121.9		(56.1	)		117.0			45.2		97.5			21.0			19.8			(7.9	)		34.2			(73.2	)
Income tax expense (benefit)		41.2		(8.5	)		46.5			21.0		31.9			4.9			7.8			(3.1	)		11.9			(25.8	)

Net income (loss)		80.7		(47.6	)		70.5			24.2		65.6			16.1			12.0			(4.8	)		22.3			(47.4	)
Net income (loss) applicable to noncontrolling interests		–		0.1			–			–		–			–			–			–			–			–

Net income (loss) applicable to controlling interest		80.7		(47.7	)		70.5			24.2		65.6			16.1			12.0			(4.8	)		22.3			(47.4	)
Preferred stock dividends		–		–			–			–		–			–			–			–			–			–
Preferred stock redemption		–		–			–			–		–			–			–			–			–			–

Net earnings (loss) applicable to common shareholders	$	80.7	$	(47.7	)	$	70.5		$	24.2	$	65.6		$	16.1		$	12.0		$	(4.8	)	$	22.3		$	(47.4	)


AVERAGE BALANCE SHEET DATA
Total assets	$	16,158	$	18,705		$	10,785		$	11,064	$	11,228		$	11,603		$	4,455		$	4,439		$	4,134		$	4,087
Net loans and leases		12,814		13,717			8,316			8,708		7,683			8,075			3,289			3,452			2,416			2,644
Total deposits		13,557		14,140			9,217			9,693		8,706			9,192			3,728			3,705			3,518			3,458
Shareholder's equity:
Preferred equity		480		470			262			262		488			439			305			354			360			360
Common equity		1,289		1,289			1,207			1,139		1,527			1,443			328			278			231			268
Noncontrolling interests		–		–			–			–		–			–			–			–			–			–
Total shareholder's equity		1,769		1,759			1,469			1,401		2,015			1,882			633			632			591			628

	Vectra					TCBW					Other						Consolidated Company
	2011		2010			2011			2010		2011			2010			2011			2010

CONDENSED INCOME STATEMENT
Net interest income	$	51.8	$	54.4		$	15.2		$	15.0	$	(179.2	)	$	(158.8	)	$	840.0		$	868.6
Provision for loan losses		1.9		17.2			5.1			6.7		0.1			–			61.3			494.2

Net interest income after provision for loan losses		49.9		37.2			10.1			8.3		(179.3	)		(158.8	)		778.7			374.4
Net impairment losses on investment securities		–		(0.9	)		–			–		(8.3	)		(48.4	)		(8.3	)		(49.3	)
Loss on sale of investment securities to Parent		–		–			–			–		13.5			54.8			–			–
Other noninterest income		10.8		16.0			1.3			1.1		(12.6	)		4.3			270.8			266.3
Noninterest expense		51.0		45.7			8.4			8.8		(0.2	)		16.1			824.6			819.4

Income (loss) before income taxes		9.7		6.6			3.0			0.6		(186.5	)		(164.2	)		216.6			(228.0	)
Income tax expense (benefit)		3.1		6.4			0.9			0.1		(51.9	)		(46.5	)		91.4			(51.5	)

Net income (loss)		6.6		0.2			2.1			0.5		(134.6	)		(117.7	)		125.2			(176.5	)
Net income (loss) applicable to noncontrolling interests		–		–			–			–		(0.5	)		(3.4	)		(0.5	)		(3.3	)

Net income (loss) applicable to controlling interest		6.6		0.2			2.1			0.5		(134.1	)		(114.3	)		125.7			(173.2	)
Preferred stock dividends		–		–			–			–		(81.9	)		(51.6	)		(81.9	)		(51.6	)
Preferred stock redemption		–		–			–			–		–			3.1			–			3.1

Net earnings (loss) applicable to common shareholders	$	6.6	$	0.2		$	2.1		$	0.5	$	(216.0	)	$	(162.8	)	$	43.8		$	(221.7	)


AVERAGE BALANCE SHEET DATA
Total assets	$	2,249	$	2,370		$	852		$	819	$	988		$	(1,375	)	$	50,849		$	51,712
Net loans and leases		1,787		1,903			577			575		(128	)		63			36,754			39,137
Total deposits		1,873		1,964			670			615		(532	)		(729	)		40,737			42,038
Shareholder's equity:
Preferred equity		70		68			15			15		182			(401	)		2,162			1,567
Common equity		203		198			71			70		(236	)		(384	)		4,620			4,301
Noncontrolling interests		–		–			–			–		(1	)		16			(1	)		16
Total shareholder's equity		273		266			86			85		(55	)		(769	)		6,781			5,884