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Stockholders' Equity and Accumulated Other Comprehensive Income (Loss)
 6 Months Ended
Jun. 30, 2012
Stockholders' Equity and Accumulated Other Comprehensive Income (Loss)

NOTE 7—Stockholders’ Equity and Accumulated Other Comprehensive Income (Loss)

On March 19, 2012, the Company issued 153 million shares of common stock at $5.90 per share, generating proceeds of approximately $875 million, net of issuance costs.

On November 14, 2008, Regions completed the sale of 3.5 million shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A, to the U.S. Treasury as part of the Capital Purchase Program (“CPP”). Under this agreement, Regions was required to pay the U.S. Treasury on a quarterly basis a 5 percent dividend, or $175 million annually, for each of the first five years of the investment, and 9 percent thereafter or until redemption. As part of its purchase of the preferred securities, the U.S. Treasury also received a warrant to purchase 48.3 million shares of Regions’ common stock at an exercise price of $10.88 per share, subject to anti-dilution and other adjustments. Regions received $3.5 billion from issuance of the Series A preferred shares and the warrant. The fair value allocation of the $3.5 billion between the preferred shares and the warrant resulted in $3.304 billion allocated to the preferred shares and $196 million allocated to the warrant. On April 4, 2012, Regions repurchased all 3.5 million shares of the Series A preferred stock issued to the U.S. Treasury Department under the CPP. Therefore, during the second quarter of 2012, Regions derecognized the carrying value of the Series A shares in the amount of approximately $3.4 billion and recorded approximately $71 million of amortization related to the remaining unaccreted discount, which reduced net income available to common shareholders. The total reduction to shareholders’ equity was $3.5 billion. In early May of 2012, Regions repurchased the warrant from the U.S. Treasury Department for $45 million. The transaction reduced additional paid-in capital within stockholders’ equity by $45 million. The warrant repurchase did not impact results of operations.

At June 30, 2012, Regions had 23.1 million common shares available for repurchase through open market transactions under an existing share repurchase authorization. There were no treasury stock purchases through open market transactions during the first six months of 2012 or 2011.

 

The Board of Directors declared a $0.01 per share cash dividend for the first and second quarters of both 2012 and 2011.

Activity within the balances in accumulated other comprehensive income (loss) is shown in the following tables for the three and six months ended June 30, 2012 and 2011.

 

    Three Months Ended  
    June 30, 2012     June 30, 2011  
    Unrealized
gains on
securities
available
for
sale		     Unrealized
gains on
derivative
instruments
designated
as cash
flow hedges		     Defined
benefit
pension
plans and
other post
employment
benefits		     Accumulated
other
comprehensive
income (loss),
net of tax		     Unrealized
gains on
securities
available
for
sale		     Unrealized
gains on
derivative
instruments
designated
as cash
flow hedges		     Defined
benefit
pension
plans and
other post
employment
benefits		     Accumulated
other
comprehensive
income (loss),
net of tax		  
    (In millions)     (In millions)  

Beginning of period

   $ 316      $ 84      $ (460 )    $ (60 )    $ (24 )    $ (39 )    $ (324 )    $ (387 ) 

Net change

     78        26        10        114        176        26        8        210   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

End of period

   $ 394      $ 110      $ (450 )    $ 54      $ 152      $ (13 )    $ (316 )    $ (177 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

    Six Months Ended  
    June 30, 2012     June 30, 2011  
    Unrealized
gains on
securities
available
for
sale		     Unrealized
gains on
derivative
instruments
designated
as cash
flow hedges		     Defined
benefit
pension
plans and
other post
employment
benefits		     Accumulated
other
comprehensive
income (loss),
net of tax		     Unrealized
gains on
securities
available
for
sale		     Unrealized
gains on
derivative
instruments
designated
as cash
flow hedges		     Defined
benefit
pension
plans and
other post
employment
benefits		     Accumulated
other
comprehensive
income (loss),
net of tax		  
    (In millions)     (In millions)  

Beginning of period

   $ 322      $ 84      $ (475 )    $ (69 )    $ 77      $ (9 )    $ (328 )    $ (260 ) 

Net change

     72        26        25        123        75        (4 )      12        83   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

End of period

   $ 394      $ 110      $ (450 )    $ 54      $ 152      $ (13 )    $ (316 )    $ (177 )