Operating Segment Information (Tables)

6 Months Ended

Jun. 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 June 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 101 branches in Utah, 25 branches in Idaho, and one branch in Wyoming. Amegy operates 79 branches in Texas. CB&T operates 94 branches in California. NBAZ operates 66 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. Effective April 1, 2015, TCBO was merged into TCBW. Note 1 discusses the upcoming consolidation of the seven bank charters into one bank charter. When completed, 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 June 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	$	144.2		$	145.6		$	95.0		$	95.4		$	98.7		$	103.7		$	40.3	$	40.3		$	28.3		$	28.3
Provision for loan losses	(8.4		)	(15.4		)	14.0			(7.5		)	(3.5		)	(12.9		)	2.7		(8.0		)	(3.0		)	(5.7		)
Net interest income after provision for loan losses	152.6			161.0			81.0			102.9			102.2			116.6			37.6		48.3			31.3			34.0
Noninterest income 1	(6.6		)	50.2			33.8			36.3			21.2			13.8			10.8		8.3			8.4			8.9
Noninterest expense	129.3			121.1			96.7			92.5			79.4			82.4			36.8		38.9			33.6			34.0
Income before income taxes	16.7			90.1			18.1			46.7			44.0			48.0			11.6		17.7			6.1			8.9
Income taxes (benefit)	4.6			33.2			5.2			15.9			17.2			19.0			4.0		6.6			2.0			3.0
Net income (loss)	12.1			56.9			12.9			30.8			26.8			29.0			7.6		11.1			4.1			5.9
Net income (loss) applicable to noncontrolling interests	0.9			—			—			—			—			—			—		—			—			—
Net income (loss) applicable to controlling interest	$	11.2		$	56.9		$	12.9		$	30.8		$	26.8		$	29.0		$	7.6	$	11.1		$	4.1		$	5.9
AVERAGE BALANCE SHEET DATA
Total assets	$	18,875		$	17,593		$	13,674		$	13,618		$	11,515		$	11,044		$	4,942	$	4,696		$	4,311		$	4,073
Cash and due from banks	251			335			97			213			86			156			43		74			75			82
Money market investments	2,970			2,679			1,980			2,435			1,776			1,252			402		412			885			764
Total securities	2,794			1,747			281			260			425			237			450		371			858			787
Total loans	12,172			12,317			10,159			9,563			8,472			8,655			3,846		3,648			2,358			2,318
Total deposits	16,456			15,322			11,198			11,167			9,864			9,394			4,291		4,014			3,902			3,676
Shareholder’s equity:
Preferred equity	280			280			226			227			162			162			85		98			50			50
Common equity	1,639			1,552			1,952			1,873			1,406			1,368			491		454			332			324
Noncontrolling interests	11			—			—			—			—			—			—		—			—			—
Total shareholder’s equity	1,930			1,832			2,178			2,100			1,568			1,530			576		552			382			374
	Vectra						TCBW						Other						Consolidated Company
	2015			2014			2015			2014			2015			2014			2015		2014
CONDENSED INCOME STATEMENT
Net interest income	$	26.4		$	25.4		$	7.7		$	8.0		$	(16.9	)	$	(30.4	)	$	423.7	$	416.3
Provision for loan losses	(0.4		)	(4.5		)	(0.8		)	(0.4		)	—			—			0.6		(54.4		)
Net interest income after provision for loan losses	26.8			29.9			8.5			8.4			(16.9		)	(30.4		)	423.1		470.7
Noninterest income 1	4.7			5.9			1.2			1.3			(73.1		)	0.2			0.4		124.9
Noninterest expense	24.4			23.7			(1.5		)	6.0			5.4			7.4			404.1		406.0
Income (loss) before income taxes	7.1			12.1			11.2			3.7			(95.4		)	(37.6		)	19.4		189.6
Income taxes (benefit)	2.4			4.3			3.9			1.3			(33.9		)	(13.3		)	5.4		70.0
Net income (loss)	4.7			7.8			7.3			2.4			(61.5		)	(24.3		)	14.0		119.6
Net income (loss) applicable to noncontrolling interests	—			—			—			—			(0.9		)	—			—		—
Net income (loss) applicable to controlling interest	$	4.7		$	7.8		$	7.3		$	2.4		$	(60.6	)	$	(24.3	)	$	14.0	$	119.6
AVERAGE BALANCE SHEET DATA
Total assets	$	3,236		$	2,595		$	987		$	948		$	(62	)	$	469		$	57,478	$	55,036
Cash and due from banks	29			47			35			25			(25		)	(13		)	591		919
Money market investments	522			20			142			104			(262		)	(162		)	8,415		7,504
Total securities	225			158			79			82			134			381			5,246		4,023
Total loans	2,400			2,316			721			725			3			2			40,131		39,544
Total deposits	2,831			2,184			852			799			(1,269		)	(1,097		)	48,125		45,459
Shareholder’s equity:
Preferred equity	25			42			3			3			173			142			1,004		1,004
Common equity	319			283			107			106			247			(215		)	6,493		5,745
Noncontrolling interests	—			—			—			—			(11		)	—			—		—
Total shareholder’s equity	344			325			110			109			409			(73		)	7,497		6,749

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

The following schedule presents selected operating segment information for the six months ended June 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	$	285.3		$	288.1		$	191.7		$	190.1	$	194.4		$	212.9		$	79.3		$	80.6		$	56.3		$	56.2
Provision for loan losses	(13.0		)	(24.1		)	25.1			9.4		(7.6		)	(15.0		)	3.4			(11.0		)	(11.7		)	(8.3		)
Net interest income after provision for loan losses	298.3			312.2			166.6			180.7		202.0			227.9			75.9			91.6			68.0			64.5
Noninterest income	40.2			94.2			67.8			68.3		37.9			19.6			19.3			16.6			17.4			13.8
Noninterest expense	256.7			242.6			190.7			179.5		153.8			167.7			73.7			76.2			65.7			66.1
Income before income taxes	81.8			163.8			43.7			69.5		86.1			79.8			21.5			32.0			19.7			12.2
Income taxes	28.0			60.0			13.7			23.2		33.6			31.1			7.4			11.8			6.6			4.0
Net income	53.8			103.8			30.0			46.3		52.5			48.7			14.1			20.2			13.1			8.2
Net income (loss) applicable to noncontrolling interests	1.4			—			—			—		—			—			—			—			—			—
Net income (loss) applicable to controlling interest	$	52.4		$	103.8		$	30.0		$	46.3	$	52.5		$	48.7		$	14.1		$	20.2		$	13.1		$	8.2
AVERAGE BALANCE SHEET DATA
Total assets	$	18,725		$	17,932		$	13,818		$	13,543	$	11,442		$	10,967		$	4,884		$	4,654		$	4,238		$	4,032
Cash and due from banks	274			337			140			267		88			161			46			73			73			85
Money market investments	2,969			3,110			2,013			2,469		1,718			1,191			399			351			810			732
Total securities	2,632			1,672			283			251		381			282			431			368			849			784
Total loans	12,176			12,282			10,217			9,463		8,487			8,597			3,805			3,672			2,371			2,312
Total deposits	16,309			15,649			11,337			11,133		9,783			9,334			4,235			3,983			3,829			3,637
Shareholder’s equity:
Preferred equity	280			280			226			190		162			162			85			109			50			50
Common equity	1,636			1,545			1,946			1,861		1,400			1,359			488			438			332			321
Noncontrolling interests	11			—			—			—		—			—			—			—			—			—
Total shareholder’s equity	1,927			1,825			2,172			2,051		1,562			1,521			573			547			382			371
	Vectra						TCBW					Other						Consolidated Company
	2015			2014			2015			2014		2015			2014			2015			2014
CONDENSED INCOME STATEMENT
Net interest income	$	52.1		$	50.7		$	15.1		$	15.7	$	(33.1	)	$	(61.5	)	$	841.1		$	832.8
Provision for loan losses	3.5			(6.3		)	(0.6		)	0.3		—			—			(0.9		)	(55.0		)
Net interest income after provision for loan losses	48.6			57.0			15.7			15.4		(33.1		)	(61.5		)	842.0			887.8
Noninterest income	9.8			9.7			2.2			0.3		(72.4		)	40.7			122.2			263.2
Noninterest expense	48.3			49.0			6.3			11.4		6.3			11.6			801.5			804.1
Income (loss) before income taxes	10.1			17.7			11.6			4.3		(111.8		)	(32.4		)	162.7			346.9
Income taxes (benefit)	3.1			6.1			4.0			1.5		(39.7		)	(11.6		)	56.7			126.1
Net income (loss)	7.0			11.6			7.6			2.8		(72.1		)	(20.8		)	106.0			220.8
Net income (loss) applicable to noncontrolling interests	—			—			—			—		(1.4		)	—			—			—
Net income (loss) applicable to controlling interest	$	7.0		$	11.6		$	7.6		$	2.8	$	(70.7	)	$	(20.8	)	$	106.0		$	220.8
AVERAGE BALANCE SHEET DATA
Total assets	$	3,107		$	2,582		$	981		$	947	$	(46	)	$	577		$	57,149		$	55,234
Cash and due from banks	29			47			35			25		(18		)	(17		)	667			978
Money market investments	431			17			135			113		(260		)	(163		)	8,215			7,820
Total securities	208			161			80			87		152			465			5,016			4,070
Total loans	2,379			2,298			717			709		3			2			40,155			39,335
Total deposits	2,700			2,176			841			800		(1,228		)	(1,093		)	47,806			45,619
Shareholder’s equity:
Preferred equity	25			56			3			3		173			154			1,004			1,004
Common equity	318			265			105			104		224			(223		)	6,449			5,670
Noncontrolling interests	—			—			—			—		(11		)	—			—			—
Total shareholder’s equity	343			321			108			107		386			(69		)	7,453			6,674

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	$	144.2		$	145.6		$	95.0		$	95.4		$	98.7		$	103.7		$	40.3	$	40.3		$	28.3		$	28.3
Provision for loan losses	(8.4		)	(15.4		)	14.0			(7.5		)	(3.5		)	(12.9		)	2.7		(8.0		)	(3.0		)	(5.7		)
Net interest income after provision for loan losses	152.6			161.0			81.0			102.9			102.2			116.6			37.6		48.3			31.3			34.0
Noninterest income 1	(6.6		)	50.2			33.8			36.3			21.2			13.8			10.8		8.3			8.4			8.9
Noninterest expense	129.3			121.1			96.7			92.5			79.4			82.4			36.8		38.9			33.6			34.0
Income before income taxes	16.7			90.1			18.1			46.7			44.0			48.0			11.6		17.7			6.1			8.9
Income taxes (benefit)	4.6			33.2			5.2			15.9			17.2			19.0			4.0		6.6			2.0			3.0
Net income (loss)	12.1			56.9			12.9			30.8			26.8			29.0			7.6		11.1			4.1			5.9
Net income (loss) applicable to noncontrolling interests	0.9			—			—			—			—			—			—		—			—			—
Net income (loss) applicable to controlling interest	$	11.2		$	56.9		$	12.9		$	30.8		$	26.8		$	29.0		$	7.6	$	11.1		$	4.1		$	5.9
AVERAGE BALANCE SHEET DATA
Total assets	$	18,875		$	17,593		$	13,674		$	13,618		$	11,515		$	11,044		$	4,942	$	4,696		$	4,311		$	4,073
Cash and due from banks	251			335			97			213			86			156			43		74			75			82
Money market investments	2,970			2,679			1,980			2,435			1,776			1,252			402		412			885			764
Total securities	2,794			1,747			281			260			425			237			450		371			858			787
Total loans	12,172			12,317			10,159			9,563			8,472			8,655			3,846		3,648			2,358			2,318
Total deposits	16,456			15,322			11,198			11,167			9,864			9,394			4,291		4,014			3,902			3,676
Shareholder’s equity:
Preferred equity	280			280			226			227			162			162			85		98			50			50
Common equity	1,639			1,552			1,952			1,873			1,406			1,368			491		454			332			324
Noncontrolling interests	11			—			—			—			—			—			—		—			—			—
Total shareholder’s equity	1,930			1,832			2,178			2,100			1,568			1,530			576		552			382			374
	Vectra						TCBW						Other						Consolidated Company
	2015			2014			2015			2014			2015			2014			2015		2014
CONDENSED INCOME STATEMENT
Net interest income	$	26.4		$	25.4		$	7.7		$	8.0		$	(16.9	)	$	(30.4	)	$	423.7	$	416.3
Provision for loan losses	(0.4		)	(4.5		)	(0.8		)	(0.4		)	—			—			0.6		(54.4		)
Net interest income after provision for loan losses	26.8			29.9			8.5			8.4			(16.9		)	(30.4		)	423.1		470.7
Noninterest income 1	4.7			5.9			1.2			1.3			(73.1		)	0.2			0.4		124.9
Noninterest expense	24.4			23.7			(1.5		)	6.0			5.4			7.4			404.1		406.0
Income (loss) before income taxes	7.1			12.1			11.2			3.7			(95.4		)	(37.6		)	19.4		189.6
Income taxes (benefit)	2.4			4.3			3.9			1.3			(33.9		)	(13.3		)	5.4		70.0
Net income (loss)	4.7			7.8			7.3			2.4			(61.5		)	(24.3		)	14.0		119.6
Net income (loss) applicable to noncontrolling interests	—			—			—			—			(0.9		)	—			—		—
Net income (loss) applicable to controlling interest	$	4.7		$	7.8		$	7.3		$	2.4		$	(60.6	)	$	(24.3	)	$	14.0	$	119.6
AVERAGE BALANCE SHEET DATA
Total assets	$	3,236		$	2,595		$	987		$	948		$	(62	)	$	469		$	57,478	$	55,036
Cash and due from banks	29			47			35			25			(25		)	(13		)	591		919
Money market investments	522			20			142			104			(262		)	(162		)	8,415		7,504
Total securities	225			158			79			82			134			381			5,246		4,023
Total loans	2,400			2,316			721			725			3			2			40,131		39,544
Total deposits	2,831			2,184			852			799			(1,269		)	(1,097		)	48,125		45,459
Shareholder’s equity:
Preferred equity	25			42			3			3			173			142			1,004		1,004
Common equity	319			283			107			106			247			(215		)	6,493		5,745
Noncontrolling interests	—			—			—			—			(11		)	—			—		—
Total shareholder’s equity	344			325			110			109			409			(73		)	7,497		6,749