22. OPERATING SEGMENT INFORMATION

We manage our operations and prepare management reports and other information with a primary focus on geographical area. As of December 31, 2011, we operate eight community/regional banks in distinct geographical areas. Performance assessment and resource allocation are based upon this geographical structure. The operating segment identified as "Other" includes the Parent, Zions Management Services Company ("ZMSC"), certain nonbank and 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 as described in Note 1. 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.

During 2011, 2010 and 2009, certain subsidiary banks sold investment securities to the Parent at their current fair value, which was less than carrying value. The "Loss on sale of investment securities to Parent" is shown separately in the following schedules as a component of other noninterest income. The amounts are eliminated in consolidation in the Other segment.

The following is a summary of selected operating segment information.


	Zions Bank									CB&T								Amegy
*(In millions)*	2011			2010			2009			2011			2010		2009			2011			2010		2009

Net interest income	$	703.0		$	724.7		$	690.4		$	509.3		$	495.6	$	465.3		$	384.5		$	392.3	$	385.7
Provision for loan losses		128.3			350.6			400.4			(9.5	)		149.9		251.5			(37.5	)		118.7		406.1

Net interest income after provision for loan losses		574.7			374.1			290.0			518.8			345.7		213.8			422.0			273.6		(20.4	)
Net impairment losses on investment securities		(0.3	)		–			(35.2	)		(0.5	)		–		(31.8	)		–			–		–
Loss on sale of investment securities to Parent		–			(54.8	)		(75.8	)		(43.9	)		–		(288.1	)		–			–		–
Valuation losses on securities purchased		–			–			(203.0	)		–			–		–			–			–		(7.5	)
Gain on subordinated debt modification		–			–			–			–			–		–			–			–		–
Acquisition related gains		–			–			–			–			–		152.7			–			–		–
Other noninterest income		199.5			193.9			199.3			103.0			100.3		152.8			145.1			143.0		136.1
Noninterest expense		547.4			576.8			522.5			355.0			346.9		295.2			325.0			334.9		345.6
Impairment loss on goodwill		–			–			–			–			–		–			–			–		633.3

Income (loss) before income taxes		226.5			(63.6	)		(347.2	)		222.4			99.1		(95.8	)		242.1			81.7		(870.7	)
Income tax expense (benefit)		76.0			(15.3	)		(144.4	)		88.0			40.3		(45.6	)		80.5			23.1		(90.3	)

Net income (loss)		150.5			(48.3	)		(202.8	)		134.4			58.8		(50.2	)		161.6			58.6		(780.4	)
Net income (loss) applicable to noncontrolling interests		–			0.1			0.1			–			–		–			–			–		–

Net income (loss) applicable to controlling interest		150.5			(48.4	)		(202.9	)		134.4			58.8		(50.2	)		161.6			58.6		(780.4	)
Preferred stock dividends		–			–			–			(6.6	)		–		(0.9	)		(12.2	)		–		(1.5	)
Preferred stock redemption		–			–			–			–			–		–			–			–		–

Net earnings (loss) applicable to common shareholders	$	150.5		$	(48.4	)	$	(202.9	)	$	127.8		$	58.8	$	(51.1	)	$	149.4		$	58.6	$	(781.9	)

Total assets	$	17,531		$	16,157		$	17,652		$	10,894		$	10,766	$	11,097		$	12,282		$	11,406	$	11,145
Net loans and leases¹		12,751			12,898			13,990			8,392			8,444		8,951			7,918			7,466		8,262
Total deposits		14,905			13,631			13,823			9,192			9,219		9,760			9,731			8,906		8,880
Shareholder's equity:
Preferred equity		480			480			460			262			262		262			488			488		376
Common equity		1,379			1,269			1,282			1,270			1,174		1,120			1,630			1,493		1,435
Noncontrolling interests		–			–			–			–			–		–			–			–		–
Total shareholder's equity		1,859			1,749			1,742			1,532			1,436		1,382			2,118			1,981		1,811


	NBA								NSB									Vectra
*(In millions)*	2011		2010			2009			2011			2010			2009			2011			2010			2009

Net interest income	$	172.3	$	177.4		$	179.1		$	135.0		$	138.4		$	140.0		$	104.3		$	108.5		$	105.3
Provision for loan losses		9.6		53.4			291.7			(38.3	)		133.3			563.7			14.0			28.2			78.5

Net interest income after provision for loan losses		162.7		124.0			(112.6	)		173.3			5.1			(423.7	)		90.3			80.3			26.8
Net impairment losses on investment securities		–		–			–			–			–			(3.3	)		(0.8	)		(1.3	)		(5.3	)
Loss on sale of investment securities to Parent		–		–			–			–			–			(11.8	)		(28.9	)		–			–
Valuation losses on securities purchased		–		–			–			–			–			–			–			–			–
Gain on subordinated debt modification		–		–			–			–			–			–			–			–			–
Acquisition related gains		–		–			–			–			–			16.5			–			–			–
Other noninterest income		34.2		32.9			44.0			37.4			38.4			60.8			21.7			29.5			31.4
Noninterest expense		154.7		169.9			170.0			139.3			152.0			180.6			100.7			92.5			96.4
Impairment loss on goodwill		–		–			–			–			–			–			–			–			–

Income (loss) before income taxes		42.2		(13.0	)		(238.6	)		71.4			(108.5	)		(542.1	)		(18.4	)		16.0			(43.5	)
Income tax expense (benefit)		16.7		(5.1	)		(94.4	)		24.8			(38.2	)		(190.1	)		(8.3	)		9.4			(17.9	)

Net income (loss)		25.5		(7.9	)		(144.2	)		46.6			(70.3	)		(352.0	)		(10.1	)		6.6			(25.6	)
Net income (loss) applicable to noncontrolling interests		–		–			–			–			–			–			–			–			–

Net income (loss) applicable to controlling interest		25.5		(7.9	)		(144.2	)		46.6			(70.3	)		(352.0	)		(10.1	)		6.6			(25.6	)
Preferred stock dividends		–		–			–			–			–			–			–			–			(0.2	)
Preferred stock redemption		–		–			–			–			–			–			–			–			–

Net earnings (loss) applicable to common shareholders	$	25.5	$	(7.9	)	$	(144.2	)	$	46.6		$	(70.3	)	$	(352.0	)	$	(10.1	)	$	6.6		$	(25.8	)

Total assets	$	4,485	$	4,397		$	4,524		$	4,100		$	4,017		$	4,187		$	2,341		$	2,299		$	2,440
Net loans and leases¹		3,304		3,277			3,609			2,235			2,399			2,752			1,914			1,812			1,981
Total deposits		3,731		3,696			3,784			3,546			3,424			3,526			2,004			1,923			2,005
Shareholder's equity:
Preferred equity		305		305			405			260			360			360			70			70			65
Common equity		350		322			228			273			225			296			200			200			199
Noncontrolling interests		–		–			–			–			–			–			–			–			–
Total shareholder's equity		655		627			633			533			585			656			270			270			264


	TCBW									Other									Consolidated Company
*(In millions)*	2011			2010			2009			2011			2010			2009			2011			2010			2009
Net interest income	$	30.3		$	30.0		$	32.1		$	(266.2	)	$	(339.5	)	$	(100.4	)	$	1,772.5		$	1,727.4		$	1,897.5
Provision for loan losses		7.8			17.4			22.5			–			0.6			2.5			74.4			852.1			2,016.9

Net interest income after provision for loan losses		22.5			12.6			9.6			(266.2	)		(340.1	)		(102.9	)		1,698.1			875.3			(119.4	)
Net impairment losses on investment securities		–			(0.7	)		(1.1	)		(32.1	)		(83.4	)		(203.8	)		(33.7	)		(85.4	)		(280.5	)
Loss on sale of investment securities to Parent		(4.8	)		–			–			77.6			54.8			375.7			–			–			–
Valuation losses on securities purchased		–			–			–			–			–			(1.6	)		–			–			(212.1	)
Gain on subordinated debt modification		–			–			–			–			–			508.9			–			–			508.9
Acquisition related gains		–			–			–			–			–			–			–			–			169.2
Other noninterest income		2.8			2.6			9.4			(28.2	)		(14.7	)		(15.2	)		515.5			525.9			618.6
Noninterest expense		16.7			15.6			15.9			19.9			30.3			45.3			1,658.7			1,718.9			1,671.5
Impairment loss on goodwill		–			–			–			–			–			2.9			–			–			636.2

Income (loss) before income taxes		3.8			(1.1	)		2.0			(268.8	)		(413.7	)		512.9			521.2			(403.1	)		(1,623.0	)
Income tax expense (benefit)		1.1			(0.6	)		0.4			(80.3	)		(120.4	)		181.0			198.5			(106.8	)		(401.3	)

Net income (loss)		2.7			(0.5	)		1.6			(188.5	)		(293.3	)		331.9			322.7			(296.3	)		(1,221.7	)
Net income (loss) applicable to noncontrolling interests		–			–			–			(1.1	)		(3.7	)		(5.7	)		(1.1	)		(3.6	)		(5.6	)

Net income (loss) applicable to controlling interest		2.7			(0.5	)		1.6			(187.4	)		(289.6	)		337.6			323.8			(292.7	)		(1,216.1	)
Preferred stock dividends		–			–			–			(151.6	)		(122.9	)		(100.3	)		(170.4	)		(122.9	)		(102.9	)
Preferred stock redemption		–			–			–			–			3.1			84.6			–			3.1			84.6

Net earnings (loss) applicable to common shareholders	$	2.7		$	(0.5	)	$	1.6		$	(339.0	)	$	(409.4	)	$	321.9		$	153.4		$	(412.5	)	$	(1,234.4	)

Total assets	$	874		$	850		$	835		$	642		$	1,143		$	(757	)	$	53,149		$	51,035		$	51,123
Net loans and leases¹		562			572			578			69			(121	)		66			37,145			36,747			40,189
Total deposits		693			662			632			(926	)		(526	)		(569	)		42,876			40,935			41,841
Shareholder's equity:
Preferred equity		15			15			15			497			77			(440	)		2,377			2,057			1,503
Common equity		75			69			69			(569	)		(161	)		(439	)		4,608			4,591			4,190
Noncontrolling interests		–			–			–			(2	)		(1	)		17			(2	)		(1	)		17
Total shareholder's equity		90			84			84			(74	)		(85	)		(862	)		6,983			6,647			5,710

¹	Net of unearned income and fees, net of related costs.