| Parent Company Only Financial Statements |
Presented below are condensed financial statements of Regions Financial Corporation: Balance Sheets | | | | | | | | | | December 31 | | 2019 | | 2018 | | (In millions) | Assets | | | | Interest-bearing deposits in other banks | $ | 1,935 |
| | $ | 1,863 |
| Loans to subsidiaries | 20 |
| | 20 |
| Debt securities available for sale | 21 |
| | 20 |
| Premises and equipment, net | 41 |
| | 44 |
| Investments in subsidiaries: | | | | Banks | 16,939 |
| | 15,953 |
| Non-banks | 207 |
| | 172 |
| | 17,146 |
| | 16,125 |
| Other assets | 295 |
| | 332 |
| Total assets | $ | 19,458 |
| | $ | 18,404 |
| Liabilities and Stockholders’ Equity | | | | Long-term borrowings | $ | 2,950 |
| | $ | 3,102 |
| Other liabilities | 213 |
| | 212 |
| Total liabilities | 3,163 |
| | 3,314 |
| Stockholders’ equity: | | | | Preferred stock | 1,310 |
| | 820 |
| Common stock | 10 |
| | 11 |
| Additional paid-in capital | 12,685 |
| | 13,766 |
| Retained earnings | 3,751 |
| | 2,828 |
| Treasury stock, at cost | (1,371 | ) | | (1,371 | ) | Accumulated other comprehensive income (loss), net | (90 | ) | | (964 | ) | Total stockholders’ equity | 16,295 |
| | 15,090 |
| Total liabilities and stockholders’ equity | $ | 19,458 |
| | $ | 18,404 |
|
Statements of Income | | | | | | | | | | | | | | Year Ended December 31 | | 2019 | | 2018 | | 2017 | | (In millions) | Income: | | | | | | Dividends received from subsidiaries | $ | 1,675 |
| | $ | 2,190 |
| | $ | 1,300 |
| Interest from subsidiaries | 4 |
| | 3 |
| | 7 |
| Other | 7 |
| | 7 |
| | 2 |
| | 1,686 |
| | 2,200 |
| | 1,309 |
| Expenses: | | | | | | Salaries and employee benefits | 54 |
| | 52 |
| | 65 |
| Interest | 153 |
| | 123 |
| | 81 |
| Furniture and equipment expense | 5 |
| | 4 |
| | 4 |
| Other | 84 |
| | 76 |
| | 69 |
| | 296 |
| | 255 |
| | 219 |
| Income before income taxes and equity in undistributed earnings of subsidiaries | 1,390 |
| | 1,945 |
| | 1,090 |
| Income tax benefit | (68 | ) | | (64 | ) | | (65 | ) | Income from continuing operations | 1,458 |
| | 2,009 |
| | 1,155 |
| Discontinued operations: | | | | | | Income (loss) from discontinued operations before income taxes | — |
| | 271 |
| | 8 |
| Income tax expense | — |
| | 80 |
| | 2 |
| Income (loss) from discontinued operations, net of tax | — |
| | 191 |
| | 6 |
| Income before equity in undistributed earnings of subsidiaries and preferred dividends | 1,458 |
| | 2,200 |
| | 1,161 |
| Equity in undistributed earnings of subsidiaries: | | | | | | Banks | 110 |
| | (454 | ) | | 74 |
| Non-banks | 14 |
| | 13 |
| | 28 |
| | 124 |
| | (441 | ) | | 102 |
| Net income | 1,582 |
| | 1,759 |
| | 1,263 |
| Preferred stock dividends | (79 | ) | | (64 | ) | | (64 | ) | Net income available to common shareholders | $ | 1,503 |
| | $ | 1,695 |
| | $ | 1,199 |
|
Statements of Cash Flows | | | | | | | | | | | | | | Year Ended December 31 | | 2019 | | 2018 | | 2017 | | (In millions) | Operating activities: | | | | | | Net income | $ | 1,582 |
| | $ | 1,759 |
| | $ | 1,263 |
| Adjustments to reconcile net cash from operating activities: | | | | | | Equity in undistributed earnings of subsidiaries | (124 | ) | | 441 |
| | (102 | ) | Depreciation, amortization and accretion, net | 4 |
| | 3 |
| | 2 |
| Loss on sale of assets | — |
| | — |
| | 1 |
| Loss on early extinguishment of debt | 16 |
| | — |
| | — |
| (Gain) on sale of business | — |
| | (281 | ) | | — |
| Net change in operating assets and liabilities: | | | | | | Other assets | 18 |
| | (35 | ) | | (19 | ) | Other liabilities | (7 | ) | | (8 | ) | | 2 |
| Other | 122 |
| | 31 |
| | 41 |
| Net cash from operating activities | 1,611 |
| | 1,910 |
| | 1,188 |
| Investing activities: | | | | | | (Investment in) / repayment of investment in subsidiaries | (18 | ) | | 146 |
| | 142 |
| Proceeds from sales and maturities of debt securities available for sale | 5 |
| | 8 |
| | 9 |
| Purchases of debt securities available for sale | (6 | ) | | (10 | ) | | (6 | ) | Net (purchases of) / proceeds from sales of assets | — |
| | — |
| | 6 |
| Proceeds from disposition of business, net of cash transferred | — |
| | 357 |
| | — |
| Other, net | — |
| | — |
| | 2 |
| Net cash from investing activities | (19 | ) | | 501 |
| | 153 |
| Financing activities: | | | | | | Net change in short-term borrowings | — |
| | (101 | ) | | — |
| Proceeds from long-term borrowings | 500 |
| | 500 |
| | 999 |
| Payments on long-term borrowings | (751 | ) | | — |
| | — |
| Cash dividends on common stock | (577 | ) | | (452 | ) | | (346 | ) | Cash dividends on preferred stock | (79 | ) | | (64 | ) | | (64 | ) | Net proceeds from issuance of preferred stock | 490 |
| | — |
| | — |
| Repurchase of common stock | (1,101 | ) | | (2,122 | ) | | (1,275 | ) | Other | (2 | ) | | (2 | ) | | (5 | ) | Net cash from financing activities | (1,520 | ) | | (2,241 | ) | | (691 | ) | Net change in cash and cash equivalents | 72 |
| | 170 |
| | 650 |
| Cash and cash equivalents at beginning of year | 1,863 |
| | 1,693 |
| | 1,043 |
| Cash and cash equivalents at end of year | $ | 1,935 |
| | $ | 1,863 |
| | $ | 1,693 |
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