v3.19.3.a.u2
Stockholders' Equity and Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Stockholders' Equity and Accumulated Other Comprehensive Income (Loss)
PREFERRED STOCK
The following table presents a summary of the non-cumulative perpetual preferred stock as of December 31:
 
 
 
 
 
 
 
 
 
 
2019
 
2018
 
Issuance Date
 
Earliest Redemption Date
 
Dividend Rate
 
Liquidation Amount
 
Carrying Amount
 
Carrying Amount
 
(Dollars in millions)
Series A
11/1/2012
 
12/15/2017
 
6.375
%
 
 
$
500

 
$
387

 
$
387

Series B
4/29/2014
 
9/15/2024
 
6.375
%
(1) 
 
500

 
433

 
433

Series C
4/30/2019
 
5/15/2029
 
5.700
%
(2) 
 
500

 
490

 
—

 
 
 
 
 
 
 
 
$
1,500

 
$
1,310

 
$
820

_________
(1) Dividends, if declared, will be paid quarterly at an annual rate equal to (i) for each period beginning prior to September 15, 2024, 6.375%, and (ii) for each period beginning on or after September 15, 2024, three-month LIBOR plus 3.536%.
(2) Dividends, if declared, will be paid quarterly at an annual rate equal to (i) for each period beginning prior to August 15, 2029, 5.700%, and (ii) for each period beginning on or after August 15, 2029, three-month LIBOR plus 3.148%.
For each preferred stock issuance listed above, Regions issued depositary shares, each representing a 1/40th ownership interest in a share of the Company's preferred stock, with a liquidation preference of $1,000.00 per share of preferred stock (equivalent to $25.00 per depositary share). Dividends on the preferred stock, if declared, accrue and are payable quarterly in arrears. The preferred stock has no stated maturity and redemption is solely at Regions' option, subject to regulatory approval, in whole, or in part, after the earliest redemption date or in whole, but not in part, within 90 days following a regulatory capital treatment event for the Series A preferred stock or at any time following a regulatory capital treatment event for the Series B and Series C preferred stock.
The Board of Directors declared $64 million in cash dividends on both Series A and Series B preferred stock, during both 2019 and 2018. In 2019, the Board of Directors declared $15 million in cash dividends on Series C Preferred Stock. Therefore, a total of $79 million in cash dividends on total preferred stock was declared in 2019 compared to the total of $64 million cash dividends on total preferred stock declared in 2018.
In the event Series A, Series B, or Series C preferred shares are redeemed at the liquidation amounts, $113 million, $67 million, or $10 million excess of the redemption amount over the carrying amount will be recognized, respectively. Approximately $100 million of Series A preferred dividends that were recorded as a reduction of preferred stock, including related surplus, will be recorded as a reduction to retained earnings, and approximately $13 million of related issuance costs that were recorded as a reduction of preferred stock, including related surplus, will be recorded as a reduction to net income available to common shareholders. Approximately $52 million of Series B preferred dividends that were recorded as a reduction of preferred stock, including related surplus, will be recorded as a reduction to retained earnings, and approximately $15 million of related issuance costs that were recorded as a reduction of preferred stock, including related surplus, will be recorded as a reduction to net income available to common shareholders. Approximately $10 million of Series C issuance costs that were recorded as a reduction of preferred stock, including related surplus, will be recorded as a reduction to net income available to common shareholders.
COMMON STOCK
Regions was not required to participate in the 2019 CCAR; however, as required, the Company did submit its planned capital actions to the Federal Reserve for the third quarter of 2019 through the second quarter of 2020. As part of the Company's capital plan, the Board authorized a new $1.370 billion common stock repurchase plan, permitting repurchases from the beginning of the third quarter of 2019 through the second quarter of 2020.
As of December 31, 2019, Regions had repurchased approximately 47.5 million shares of common stock at a total cost of approximately $721.5 million under this plan. All of these shares were immediately retired upon repurchase and, therefore will not be included in treasury stock.
Prior to the new common stock repurchase plan, Regions had authorization to repurchase $2.031 billion in common shares. As of June 30, 2019, Regions had repurchased approximately 115.38 million shares of common stock at a total cost of $2.031 billion under this plan.
Regions declared $0.59 per share in cash dividends for 2019, $0.46 for 2018, and $0.315 for 2017.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Activity within the balances in accumulated other comprehensive income (loss) is shown in the following tables for the years ended December 31: 
 
2019
 
Unrealized losses on securities transferred to held to maturity
 
Unrealized gains (losses) on securities available for sale
 
Unrealized gains (losses) 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)
Beginning of year
$
(27
)
 
$
(397
)
 
$
(63
)
 
$
(477
)
 
$
(964
)
Net change
5

 
602

 
385

 
(118
)
 
874

End of year
$
(22
)
 
$
205

 
$
322

 
$
(595
)
 
$
(90
)
 
2018
 
Unrealized losses on securities transferred to held to maturity
 
Unrealized gains (losses) on securities available for sale
 
Unrealized gains (losses) 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)
Beginning of year
$
(33
)
 
$
(153
)
 
$
(51
)
 
$
(512
)
 
$
(749
)
Net change
6

 
(244
)
 
(12
)
 
35

 
(215
)
End of year
$
(27
)
 
$
(397
)
 
$
(63
)
 
$
(477
)
 
$
(964
)
 
2017
 
Unrealized losses on securities transferred to held to maturity
 
Unrealized gains (losses) on securities available for sale
 
Unrealized gains (losses) 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)
Beginning of year
$
(33
)
 
$
(106
)
 
$
11

 
$
(422
)
 
$
(550
)
Net change
6

 
(12
)
 
(51
)
 
(9
)
 
(66
)
Reclassification of the Tax Reform related revaluation of deferred tax items within AOCI
(6
)
 
(35
)
 
(11
)
 
(81
)
 
(133
)
End of year
$
(33
)
 
$
(153
)
 
$
(51
)
 
$
(512
)
 
$
(749
)

The following table presents amounts reclassified out of accumulated other comprehensive income (loss) for the years ended December 31:
 
 
2019
 
2018
 
2017
 
Details about Accumulated Other Comprehensive Income (Loss) Components
 
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)(1)
 
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)(1)
 
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)(1)
Affected Line Item in the Consolidated Statements of Income
 
 
(In millions)
 
Unrealized losses on securities transferred to held to maturity:
 
 
 
 
 
 
 
 
 
$
(7
)
 
$
(9
)
 
$
(10
)
Net interest income and other financing income
 
 
2

 
3

 
4

Tax (expense) or benefit
 
 
$
(5
)
 
$
(6
)
 
$
(6
)
Net of tax
Unrealized gains and (losses) on available for sale securities:
 
 
 
 
 
 
 
 
 
$
(28
)
 
$
—

 
$
19

Securities gains (losses), net
 
 
7

 
—

 
(7
)
Tax (expense) or benefit
 
 
$
(21
)
 
$
—

 
$
12

Net of tax
 
 
 
 
 
 
 
 
Gains and (losses) on cash flow hedges:
 
 
 
 
 
 
 
Interest rate contracts
 
$
(24
)
 
$
12

 
$
86

Net interest income and other financing income
 
 
6

 
(3
)
 
(33
)
Tax (expense) or benefit
 
 
$
(18
)
 
$
9

 
$
53

Net of tax
 
 
 
 
 
 
 
 
Amortization of defined benefit pension plans and other post employment benefits:
 
 
 
 
 
 
 
Actuarial gains (losses) and settlements
(2) 
$
(43
)
 
$
(36
)
 
$
(48
)
Other non-interest expense
 
 
11

 
8

 
17

Tax (expense) or benefit
 
 
$
(32
)
 
$
(28
)
 
$
(31
)
Net of tax
 
 
 
 
 
 
 
 
Total reclassifications for the period
 
$
(76
)
 
$
(25
)
 
$
28

Net of tax
_________
(1) Amounts in parentheses indicate reductions to net income.
(2) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost and are included in other non-interest expense on the consolidated statements of income (see Note 18 for additional details).