Operating Segment Information (Tables)

9 Months Ended

Sep. 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 September 30, 2017, Zions Bank operates 98 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 September 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		$	157		$	122	$	114	$	118		$	110		$	53		$	48	$	34		$	31
Provision for loan losses	(15		)	(1		)	33		24		(4		)	(2		)	(8		)	—		(3		)	(4		)
Net interest income after provision for loan losses	179			158			89		90		122			112			61			48		37			35
Noninterest income	39			39			28		32		20			18			10			11		11			10
Noninterest expense	107			108			86		75		74			75			38			36		35			34
Income (loss) before income taxes	$	111		$	89		$	31	$	47	$	68		$	55		$	33		$	23	$	13		$	11
SELECTED AVERAGE BALANCE SHEET DATA
Total loans	$	12,543		$	12,629		$	11,170	$	10,666	$	9,575		$	9,341		$	4,267		$	4,156	$	2,347		$	2,288
Total deposits	15,773			15,948			10,862		11,068		11,021			10,929			4,816			4,632		4,276			4,223
(In millions)	Vectra						TCBW				Other						Consolidated Company
	2017			2016			2017		2016		2017			2016			2017			2016
SELECTED INCOME STATEMENT DATA
Net interest income	$	32		$	31		$	12	$	10	$	(13	)	$	(32	)	$	522		$	469
Provision for loan losses	—			2			3		—		(1		)	—			5			19
Net interest income after provision for loan losses	32			29			9		10		(12		)	(32		)	517			450
Noninterest income	7			6			1		1		23			28			139			145
Noninterest expense	25			25			5		5		43			45			413			403
Income (loss) before income taxes	$	14		$	10		$	5	$	6	$	(32	)	$	(49	)	$	243		$	192
SELECTED AVERAGE BALANCE SHEET DATA
Total loans	$	2,683		$	2,489		$	939	$	796	$	308		$	122		$	43,832		$	42,487
Total deposits	2,757			2,663			1,098		1,010		1,318			202			51,921			50,675

The following schedule presents selected operating segment information for the nine months ended September 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	$	483	$	462		$	359	$	344	$	351		$	322		$	153		$	140	$	98		$	91
Provision for loan losses	18		(31		)	41		159		(10		)	(1		)	(7		)	2		(8		)	(29		)
Net interest income after provision for loan losses	465		493			318		185		361			323			160			138		106			120
Noninterest income	112		112			87		90		56			51			29			30		30			29
Noninterest expense	327		320			259		244		225			221			111			109		105			104
Income (loss) before income taxes	$	250	$	285		$	146	$	31	$	192		$	153		$	78		$	59	$	31		$	45
SELECTED AVERAGE BALANCE SHEET DATA
Total loans	$	12,505	$	12,512		$	10,890	$	10,599	$	9,453		$	9,170		$	4,258		$	4,010	$	2,352		$	2,275
Total deposits	16,001		15,866			11,131		11,100		10,953			10,764			4,747			4,553		4,240			4,113
(In millions)	Vectra					TCBW				Other						Consolidated Company
	2017		2016			2017		2016		2017			2016			2017			2016
SELECTED INCOME STATEMENT DATA
Net interest income	$	93	$	90		$	34	$	28	$	(32	)	$	(91	)	$	1,539		$	1,386
Provision for loan losses	—		(4		)	2		—		(1		)	(1		)	35			95
Net interest income after provision for loan losses	93		94			32		28		(31		)	(90		)	1,504			1,291
Noninterest income	19		17			3		3		68			56			404			388
Noninterest expense	75		73			16		15		114			95			1,232			1,181
Income (loss) before income taxes	$	37	$	38		$	19	$	16	$	(77	)	$	(129	)	$	676		$	498
SELECTED AVERAGE BALANCE SHEET DATA
Total loans	$	2,607	$	2,453		$	909	$	769	$	244		$	80		$	43,218		$	41,868
Total deposits	2,758		2,704			1,098		970		1,227			(8		)	52,155			50,062

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		$	157		$	122	$	114	$	118		$	110		$	53		$	48	$	34		$	31
Provision for loan losses	(15		)	(1		)	33		24		(4		)	(2		)	(8		)	—		(3		)	(4		)
Net interest income after provision for loan losses	179			158			89		90		122			112			61			48		37			35
Noninterest income	39			39			28		32		20			18			10			11		11			10
Noninterest expense	107			108			86		75		74			75			38			36		35			34
Income (loss) before income taxes	$	111		$	89		$	31	$	47	$	68		$	55		$	33		$	23	$	13		$	11
SELECTED AVERAGE BALANCE SHEET DATA
Total loans	$	12,543		$	12,629		$	11,170	$	10,666	$	9,575		$	9,341		$	4,267		$	4,156	$	2,347		$	2,288
Total deposits	15,773			15,948			10,862		11,068		11,021			10,929			4,816			4,632		4,276			4,223
(In millions)	Vectra						TCBW				Other						Consolidated Company
	2017			2016			2017		2016		2017			2016			2017			2016
SELECTED INCOME STATEMENT DATA
Net interest income	$	32		$	31		$	12	$	10	$	(13	)	$	(32	)	$	522		$	469
Provision for loan losses	—			2			3		—		(1		)	—			5			19
Net interest income after provision for loan losses	32			29			9		10		(12		)	(32		)	517			450
Noninterest income	7			6			1		1		23			28			139			145
Noninterest expense	25			25			5		5		43			45			413			403
Income (loss) before income taxes	$	14		$	10		$	5	$	6	$	(32	)	$	(49	)	$	243		$	192
SELECTED AVERAGE BALANCE SHEET DATA
Total loans	$	2,683		$	2,489		$	939	$	796	$	308		$	122		$	43,832		$	42,487
Total deposits	2,757			2,663			1,098		1,010		1,318			202			51,921			50,675

The following schedule presents selected operating segment information for the nine months ended September 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	$	483	$	462		$	359	$	344	$	351		$	322		$	153		$	140	$	98		$	91
Provision for loan losses	18		(31		)	41		159		(10		)	(1		)	(7		)	2		(8		)	(29		)
Net interest income after provision for loan losses	465		493			318		185		361			323			160			138		106			120
Noninterest income	112		112			87		90		56			51			29			30		30			29
Noninterest expense	327		320			259		244		225			221			111			109		105			104
Income (loss) before income taxes	$	250	$	285		$	146	$	31	$	192		$	153		$	78		$	59	$	31		$	45
SELECTED AVERAGE BALANCE SHEET DATA
Total loans	$	12,505	$	12,512		$	10,890	$	10,599	$	9,453		$	9,170		$	4,258		$	4,010	$	2,352		$	2,275
Total deposits	16,001		15,866			11,131		11,100		10,953			10,764			4,747			4,553		4,240			4,113
(In millions)	Vectra					TCBW				Other						Consolidated Company
	2017		2016			2017		2016		2017			2016			2017			2016
SELECTED INCOME STATEMENT DATA
Net interest income	$	93	$	90		$	34	$	28	$	(32	)	$	(91	)	$	1,539		$	1,386
Provision for loan losses	—		(4		)	2		—		(1		)	(1		)	35			95
Net interest income after provision for loan losses	93		94			32		28		(31		)	(90		)	1,504			1,291
Noninterest income	19		17			3		3		68			56			404			388
Noninterest expense	75		73			16		15		114			95			1,232			1,181
Income (loss) before income taxes	$	37	$	38		$	19	$	16	$	(77	)	$	(129	)	$	676		$	498
SELECTED AVERAGE BALANCE SHEET DATA
Total loans	$	2,607	$	2,453		$	909	$	769	$	244		$	80		$	43,218		$	41,868
Total deposits	2,758		2,704			1,098		970		1,227			(8		)	52,155			50,062