| Business Segment Information |
NOTE 14—Business
Segment Information
Regions’ segment information is presented based on
Regions’ key segments of business. Each segment is a
strategic business unit that serves specific needs of
Regions’ customers. The Company’s primary segment is
Banking/Treasury, which represents the Company’s branch
network, including consumer and commercial banking functions, and
has separate management that is responsible for the operation of
that business unit. This segment also includes the Company’s
Treasury function, including the Company’s securities
portfolio and other wholesale funding activities.
The Insurance segment includes all business associated with
commercial insurance and credit life products sold to consumer
customers.
The Investment Banking/Brokerage/Trust segment includes trust
activities and all brokerage and investment activities associated
with Morgan Keegan. As discussed in Note 2, in early 2012 Regions
entered into an agreement to sell Morgan Keegan and related
entities, which closed on April 2, 2012. The financial
information related to these entities is shown in the tables below
as discontinued operations, within the Investment
Banking/Brokerage/Trust segment. The continuing operations
information within this segment is primarily related to
Regions’ trust activities, which were not sold. See Note 2
for further details.
The following tables present financial information for each
reportable segment for the period indicated.
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Three Months Ended
June 30, 2012 |
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Investment Banking/
Brokerage/Trust |
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| |
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Banking/
Treasury |
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|
Insurance |
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|
Continuing
Operations |
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Discontinued
Operations |
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Total
Company |
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| |
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(In
millions) |
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Net interest
income
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$ |
828 |
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|
$ |
1 |
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|
$ |
9 |
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|
$ |
— |
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|
$ |
838 |
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Provision for loan
losses
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|
|
26 |
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|
— |
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|
— |
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|
|
— |
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|
|
26 |
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Non-interest
income
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|
420 |
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|
35 |
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|
52 |
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|
15 |
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|
522 |
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Non-interest
expense
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|
778 |
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|
25 |
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|
39 |
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|
11 |
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|
853 |
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Income tax
expense
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|
112 |
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|
4 |
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|
10 |
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— |
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|
126 |
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Net income
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$ |
332 |
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$ |
7 |
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$ |
12 |
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$ |
4 |
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$ |
355 |
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Average assets
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$ |
117,729 |
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$ |
553 |
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$ |
4,144 |
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$ |
49 |
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$ |
122,475 |
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| |
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Three Months Ended
June 30, 2011 |
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Investment Banking/
Brokerage/Trust |
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|
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| |
|
Banking/
Treasury |
|
|
Insurance |
|
|
Continuing
Operations |
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Discontinued
Operations |
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Total
Company |
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| |
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(In
millions) |
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Net interest
income
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$ |
848 |
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|
$ |
— |
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|
$ |
8 |
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$ |
8 |
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$ |
864 |
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Provision for loan
losses
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|
398 |
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— |
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— |
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— |
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|
398 |
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Non-interest
income
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|
452 |
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|
33 |
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|
58 |
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|
238 |
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|
781 |
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Non-interest
expense
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|
889 |
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|
23 |
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|
44 |
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|
242 |
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|
1,198 |
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Income tax expense
(benefit)
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|
(29 |
) |
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|
3 |
|
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(8 |
) |
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|
(26 |
) |
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|
(60 |
) |
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Net income
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$ |
42 |
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$ |
7 |
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$ |
30 |
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$ |
30 |
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$ |
109 |
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Average assets
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$ |
123,429 |
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$ |
520 |
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$ |
3,489 |
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$ |
3,240 |
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$ |
130,678 |
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Six Months Ended
June 30, 2012 |
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Investment Banking/
Brokerage/Trust |
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| |
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Banking/
Treasury |
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Insurance |
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Continuing
Operations |
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Discontinued
Operations |
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Total
Company |
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(In
millions) |
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Net interest
income
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$ |
1,645 |
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|
$ |
1 |
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|
$ |
19 |
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|
$ |
7 |
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|
$ |
1,672 |
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Provision for loan
losses
|
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|
143 |
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|
— |
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|
— |
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|
— |
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|
|
143 |
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Non-interest
income
|
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|
861 |
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|
69 |
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|
101 |
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|
255 |
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|
1,286 |
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Non-interest
expense
|
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|
1,626 |
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|
50 |
|
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|
79 |
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|
323 |
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|
2,078 |
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Income tax expense
(benefit)
|
|
|
184 |
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|
7 |
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|
17 |
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(25 |
) |
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|
183 |
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Net income
(loss)
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$ |
553 |
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|
$ |
13 |
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|
$ |
24 |
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|
$ |
(36 |
) |
|
$ |
554 |
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Average assets
|
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$ |
118,355 |
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|
$ |
549 |
|
|
$ |
4,187 |
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|
$ |
1,413 |
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$ |
124,504 |
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Six Months Ended
June 30, 2011 |
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Investment Banking/
Brokerage/Trust |
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|
| |
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Banking/
Treasury |
|
|
Insurance |
|
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Continuing
Operations |
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Discontinued
Operations |
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Total
Company |
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| |
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(In
millions) |
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Net interest
income
|
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$ |
1,695 |
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|
$ |
1 |
|
|
$ |
15 |
|
|
$ |
16 |
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$ |
1,727 |
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Provision for loan
losses
|
|
|
880 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
880 |
|
|
Non-interest
income
|
|
|
944 |
|
|
|
70 |
|
|
|
109 |
|
|
|
501 |
|
|
|
1,624 |
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Non-interest
expense
|
|
|
1,757 |
|
|
|
49 |
|
|
|
82 |
|
|
|
477 |
|
|
|
2,365 |
|
|
Income tax expense
(benefit)
|
|
|
(71 |
) |
|
|
8 |
|
|
|
— |
|
|
|
(9 |
) |
|
|
(72 |
) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net income
|
|
$ |
73 |
|
|
$ |
14 |
|
|
$ |
42 |
|
|
$ |
49 |
|
|
$ |
178 |
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|
|
|
|
|
|
|
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Average assets
|
|
$ |
123,695 |
|
|
$ |
521 |
|
|
$ |
3,495 |
|
|
$ |
3,233 |
|
|
$ |
130,944 |
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