v3.22.0.1
Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Allowance for Credit Losses
NOTE 5. ALLOWANCE FOR CREDIT LOSSES
Regions determines the appropriate level of the allowance on a quarterly basis. The methodology is described in Note 1. Additionally, refer to Note 1 "Summary of Significant Accounting Policies" to the consolidated financial statements to the Annual Report on Form 10-K for the year ended December 31, 2019, for a description of the methodology prior to the adoption of CECL on January 1, 2020.
As of December 31, 2021, Regions' total loans included $748 million of PPP loans. These loans are guaranteed by the Federal government and as the guarantee is not separable from the loans, Regions recorded an immaterial allowance on these loans.
ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES
Macroeconomic factors utilized in the CECL loss models include, but are not limited to, unemployment rate, GDP, HPI and the S&P 500 index, with unemployment being the most significant macroeconomic factor within the CECL models. Regions' models are sensitive to changes in the economic scenario, specifically to the level of unemployment.
The following tables present analyses of the allowance for credit losses by portfolio segment for the years ended December 31, 2021, 2020 and 2019. The total allowance for loan losses and the related loan portfolio ending balance for the year ended 2019 is disaggregated to detail the amounts derived through individual evaluation and collective evaluation for impairment. Prior to 2020, the allowance for loan losses related to individually evaluated loans was attributable to allowances for non-accrual commercial and investor real estate loans and all TDRs ("impaired loans") and the allowance for loan losses related to collectively evaluated loans was attributable to the remainder of the portfolio. With the adoption of CECL on January 1, 2020, the impaired loan designation and disclosures related to impaired loans are no longer required.
 2021
 CommercialInvestor Real
Estate		ConsumerTotal
 (In millions)
Allowance for loan losses, January 1, 2021 $1,196 $183 $788 $2,167 
Provision for (benefit from) loan losses(445)(87)39 (493)
Initial allowance on acquired PCD loans— — 9 9 
Loan losses:
Charge-offs(128)(20)(180)(328)
Recoveries59 3 62 124 
Net loan losses(69)(17)(118)(204)
Allowance for loan losses, December 31, 2021682 79 718 1,479 
Reserve for unfunded credit commitments, January 1, 202197 14 15 126 
Provision for (benefit from) unfunded credit losses(39)(6)14 (31)
Reserve for unfunded credit commitments, December 31, 202158 8 29 95 
Allowance for credit losses, December 31, 2021$740 $87 $747 $1,574 
 2020
 CommercialInvestor Real
Estate		ConsumerTotal
 (In millions)
Allowance for loan losses, December 31, 2019$537 $45 $287 $869 
Cumulative change in accounting guidance (Note 1)(3)7 434 438 
Allowance for loan losses, January 1, 2020 (adjusted for change in accounting guidance)534 52 721 1,307 
Provision for loan losses927 129 256 1,312 
Initial allowance on acquired PCD loans60— — 60
Loan losses:
Charge-offs(368)(1)(244)(613)
Recoveries43 3 55 101 
Net loan losses(325)2 (189)(512)
Allowance for loan losses, December 31, 20201,196 183 788 2,167 
Reserve for unfunded credit commitments, December 31, 201941 4 — 45 
Cumulative change in accounting guidance (Note 1)36 13 14 63 
Reserve for unfunded credit commitments, January 1, 202077 17 14 108 
Provision for (benefit from) unfunded credit losses20 (3)1 18 
Reserve for unfunded credit commitments, December 31, 202097 14 15 126 
Allowance for credit losses, December 31, 2020$1,293 $197 $803 $2,293 
 2019
 CommercialInvestor Real
Estate		ConsumerTotal
 (In millions)
Allowance for loan losses, January 1, 2019$520 $58 $262 $840 
Provision for (benefit from) loan losses138 (16)265 387 
Loan losses:
Charge-offs(150)(1)(292)(443)
Recoveries29 4 52 85 
Net loan losses(121)3 (240)(358)
Allowance for loan losses, December 31, 2019537 45 287 869 
Reserve for unfunded credit commitments, January 1, 201947 4 — 51 
Provision for (benefit from) unfunded credit losses(6)— — (6)
Reserve for unfunded credit commitments, December 31, 201941 4 — 45 
Allowance for credit losses, December 31, 2019$578 $49 $287 $914 
Portion of ending allowance for loan losses:
Individually evaluated for impairment$120 $4 $29 $153 
Collectively evaluated for impairment417 41 258 716 
Total allowance for loan losses$537 $45 $287 $869 
Portion of loan portfolio ending balance:
Individually evaluated for impairment$537 $34 $381 $952 
Collectively evaluated for impairment45,302 6,523 30,186 82,011 
Total loans evaluated for impairment$45,839 $6,557 $30,567 $82,963 
PORTFOLIO SEGMENT RISK FACTORS
The following describe the risk characteristics relevant to each of the portfolio segments.
Commercial—The commercial portfolio segment includes commercial and industrial loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases or other expansion projects. Commercial also includes owner-occupied commercial real estate mortgage loans to operating businesses, which are loans for long-term financing of land and buildings, and are repaid by cash flow generated by business operations. Owner-occupied construction loans are made to commercial businesses for the development of land or construction of a building where the repayment is derived from revenues generated from the business of the borrower. Collection risk in this portfolio is driven by the creditworthiness of underlying borrowers, particularly cash flow from customers’ business operations, and the sensitivity to market fluctuations in commodity prices.
Investor Real Estate—Loans for real estate development are repaid through cash flow related to the operation, sale or refinance of the property. This portfolio segment includes extensions of credit to real estate developers or investors where repayment is dependent on the sale of real estate or income generated from the real estate collateral. A portion of Regions’ investor real estate portfolio segment consists of loans secured by residential product types (land, single-family and condominium loans) within Regions’ markets. Additionally, these loans are made to finance income-producing properties such as apartment buildings, office and industrial buildings, and retail shopping centers. Loans in this portfolio segment are particularly sensitive to the valuation of real estate.
Consumer—The consumer portfolio segment includes residential first mortgage, home equity lines, home equity loans, consumer credit card, other consumer—exit portfolios and other consumer loans. Residential first mortgage loans represent loans to consumers to finance a residence. These loans are typically financed over a 15 to 30 year term and, in most cases, are extended to borrowers to finance their primary residence. Home equity lending includes both home equity loans and lines of credit. This type of lending, which is secured by a first or second mortgage on the borrower’s residence, allows customers to borrow against the equity in their home. Real estate market values as of the time the loan or line is secured directly affect the amount of credit extended and, in addition, changes in these values impact the depth of potential losses. Consumer credit card lending includes Regions branded consumer credit card accounts. Other consumer—exit portfolios includes lending initiatives through third parties consisting of loans made through automotive dealerships and other point of sale lending. Regions ceased originating new loans related to these businesses prior to 2020. Other consumer loans include other revolving consumer accounts, indirect and direct consumer loans, and overdrafts. Loans in this portfolio segment are sensitive to unemployment and other key consumer economic measures.
CREDIT QUALITY INDICATORS
The following tables present credit quality indicators for the loan portfolio segments and classes, excluding loans held for sale, as of December 31, 2021 and 2020.
Commercial and investor real estate portfolio segments are detailed by categories related to underlying credit quality and probability of default. Regions assigns these categories at loan origination and reviews the relationship utilizing a risk-based approach on, at minimum, an annual basis or at any time management becomes aware of information affecting the borrowers' ability to fulfill their obligations. Both quantitative and qualitative factors are considered in this review process. These categories are utilized to develop the associated allowance for credit losses.
•Pass—includes obligations where the probability of default is considered low;
•Special Mention—includes obligations that have potential weakness that may, if not reversed or corrected, weaken the credit or inadequately protect the Company’s position at some future date. Obligations in this category may also be subject to economic or market conditions that may, in the future, have an adverse effect on debt service ability;
•Substandard Accrual—includes obligations that exhibit a well-defined weakness that presently jeopardizes debt repayment, even though they are currently performing. These obligations are characterized by the distinct possibility that the Company may incur a loss in the future if these weaknesses are not corrected;
•Non-accrual—includes obligations where management has determined that full payment of principal and interest is in doubt.
Substandard accrual and non-accrual loans are often collectively referred to as “classified.” Special mention, substandard accrual, and non-accrual loans are often collectively referred to as “criticized and classified.”
Regions considers factors such as periodic updates of FICO scores, unemployment rates, home prices, accrual status and geography as credit quality indicators for the consumer loan portfolio. FICO scores are obtained at origination as part of Regions' formal underwriting process. Refreshed FICO scores are obtained by the Company quarterly for all consumer loans, including residential first mortgage loans. Current FICO data is not available for certain loans in the portfolio for various reasons; for example, if customers do not use sufficient credit, an updated score may not be available. These categories are utilized to develop the associated allowance for credit losses. The higher the FICO score the less probability of default and vice versa.
The disclosure of credit quality indicators for loan portfolio segments and classes, excluding loans held for sale, is presented by credit quality indicator by vintage year. Regions defines the vintage date for the purposes of disclosure as the date of the most recent credit decision. In general, renewals are categorized as new credit decisions and reflect the renewal date as the vintage date. Loans that are modified as a TDR are considered to be a continuation of the original loan, therefore the origination date of the original loan is reflected as the vintage date. The following tables present applicable credit quality indicators for the loan portfolio segments and classes, excluding loans held for sale, as of December 31, 2021 and 2020. Classes in the commercial and investor real estate portfolio segments are disclosed by risk rating. Classes in the consumer portfolio segment are disclosed by current FICO scores.
December 31, 2021
Term LoansRevolving Loans Revolving Loans Converted to Amortizing
Unallocated (1)
Total
Origination Year
20212020201920182017Prior
(In millions)
Commercial and industrial:
   Risk Rating:
   Pass(2)
$11,098 $5,231 $3,711 $1,781 $1,625 $2,611 $15,794 $— $(60)$41,791 
   Special Mention54 43 177 147 25 77 383 — — $906 
   Substandard Accrual83 76 57 90 17 12 421 — — 756 
   Non-accrual70 22 45 9 11 15 133 — — 305 
Total commercial and industrial$11,305 $5,372 $3,990 $2,027 $1,678 $2,715 $16,731 $— $(60)$43,758 
December 31, 2021
Term LoansRevolving Loans Revolving Loans Converted to Amortizing
Unallocated (1)
Total
Origination Year
20212020201920182017Prior
(In millions)
Commercial real estate mortgage—owner-occupied:
   Risk Rating:
   Pass$1,404 $1,095 $671 $663 $381 $724 $122 $— $(7)$5,053 
   Special Mention7 48 12 11 12 16 1 — — $107 
   Substandard Accrual3 8 34 11 6 12 1 — — $75 
   Non-accrual3 6 7 10 12 14 — — — 52 
Total commercial real estate mortgage—owner-occupied:$1,417 $1,157 $724 $695 $411 $766 $124 $— $(7)$5,287 
Commercial real estate construction—owner-occupied:
   Risk Rating:
   Pass$68 $61 $24 $30 $20 $42 $1 $— $— $246 
   Special Mention— — — 2 1 2 — — — 5 
   Substandard Accrual— — — 2 — — — — — 2 
   Non-accrual1 1 — — 1 8 — — — 11 
Total commercial real estate construction—owner-occupied:$69 $62 $24 $34 $22 $52 $1 $— $— $264 
Total commercial$12,791 $6,591 $4,738 $2,756 $2,111 $3,533 $16,856 $— $(67)$49,309 
Commercial investor real estate mortgage:
   Risk Rating:
   Pass$1,783 $808 $900 $580 $144 $95 $487 $— $(4)$4,793 
   Special Mention23 84 223 21 1 9 — — — 361 
   Substandard Accrual52 85 94 31 15 — 7 — — 284 
   Non-accrual— — — 1 — 2 — — — 3 
Total commercial investor real estate mortgage$1,858 $977 $1,217 $633 $160 $106 $494 $— $(4)$5,441 
Commercial investor real estate construction:
   Risk Rating:
   Pass$135 $343 $404 $82 $1 $1 $593 $— $(11)$1,548 
   Special Mention— 12 26 — — — — — — 38 
   Substandard Accrual— — — — — — — — — — 
   Non-accrual— — — — — — — — — — 
Total commercial investor real estate construction$135 $355 $430 $82 $1 $1 $593 $— $(11)$1,586 
Total investor real estate$1,993 $1,332 $1,647 $715 $161 $107 $1,087 $— $(15)$7,027 
December 31, 2021
Term LoansRevolving Loans Revolving Loans Converted to Amortizing
Unallocated (1)
Total
Origination Year
20212020201920182017Prior
(In millions)
Residential first mortgage:
FICO scores
   Above 720$4,020 $5,280 $1,106 $426 $612 $2,601 $— $— $— $14,045 
   681-720449 366 108 57 69 353 — — — 1,402 
   620-680246 161 78 50 44 378 — — — 957 
   Below 62039 58 49 47 47 451 — — — 691 
   Data not available56 46 20 7 11 111 9 — 157 417 
Total residential first mortgage$4,810 $5,911 $1,361 $587 $783 $3,894 $9 $— $157 $17,512 
Home equity lines:
FICO scores
   Above 720$— $— $— $— $— $— $2,761 $49 $— $2,810 
   681-720— — — — — — 380 12 — 392 
   620-680— — — — — — 254 11 — 265 
   Below 620— — — — — — 132 8 — 140 
   Data not available— — — — — — 105 5 27 137 
Total home equity lines$— $— $— $— $— $— $3,632 $85 $27 $3,744 
Home equity loans
FICO scores
   Above 720$544 $320 $155 $144 $217 $588 $— $— $— $1,968 
   681-72082 35 26 22 23 71 — — — 259 
   620-68034 14 13 12 15 59 — — — 147 
   Below 6206 3 6 7 11 46 — — — 79 
   Data not available2 3 3 4 5 22 — — 18 57 
Total home equity loans$668 $375 $203 $189 $271 $786 $— $— $18 $2,510 
Consumer credit card:
FICO scores
Above 720$— $— $— $— $— $— $675 $— $— $675 
681-720— — — — — — 240 — — 240 
620-680— — — — — — 194 — — 194 
Below 620— — — — — — 81 — — 81 
Data not available— — — — — — 8 — (14)(6)
Total consumer credit card$— $— $— $— $— $— $1,198 $— $(14)$1,184 
Other consumer—exit portfolios:
FICO scores
   Above 720$— $— $157 $318 $135 $81 $— $— $— $691 
   681-720— — 47 71 32 20 — — — 170 
   620-680— — 28 50 24 17 — — — 119 
   Below 620— — 10 31 16 13 — — — 70 
   Data not available— — 2 5 4 3 — — 7 21 
Total Other consumer- exit portfolios$— $— $244 $475 $211 $134 $— $— $7 $1,071 
December 31, 2021
Term LoansRevolving Loans Revolving Loans Converted to Amortizing
Unallocated (1)
Total
Origination Year
20212020201920182017Prior
(In millions)
Other consumer:
FICO scores
   Above 720$1,555 $844 $543 $222 $66 $76 $116 $— $— $3,422 
   681-720381 203 131 58 19 18 56 — — 866 
   620-680232 125 72 37 15 13 40 — — 534 
   Below 62066 50 33 20 8 7 17 — — 201 
   Data not available62 7 156 91 4 4 2 — 78 404 
Total other consumer$2,296 $1,229 $935 $428 $112 $118 $231 $— $78 $5,427 
Total consumer loans$7,774 $7,515 $2,743 $1,679 $1,377 $4,932 $5,070 $85 $273 $31,448 
Total Loans$22,558 $15,438 $9,128 $5,150 $3,649 $8,572 $23,013 $85 $191 $87,784 
December 31, 2020
Term LoansRevolving LoansRevolving Loans Converted to Amortizing
Unallocated (1)
Total
Origination Year
20202019201820172016Prior
(In millions)
Commercial and industrial:
Risk Rating:
Pass(2)
$12,260 $6,115 $3,550 $2,413 $1,166 $2,493 $12,138 $— $(39)$40,096 
Special Mention133 250 376 84 5 48 722 — — 1,618 
Substandard Accrual41 50 78 55 20 4 490 — — 738 
Non-accrual42 59 97 20 23 19 158 — — 418 
Total commercial and industrial$12,476 $6,474 $4,101 $2,572 $1,214 $2,564 $13,508 $— $(39)$42,870 
Commercial real estate mortgage—owner-occupied:
Risk Rating:
Pass$1,379 $882 $913 $547 $401 $801 $140 $— $(3)$5,060 
Special Mention18 31 23 22 10 44 6 — — 154 
Substandard Accrual3 38 16 16 4 15 2 — — 94 
Non-accrual14 23 19 21 6 14 — — — 97 
Total commercial real estate mortgage—owner-occupied:$1,414 $974 $971 $606 $421 $874 $148 $— $(3)$5,405 
Commercial real estate construction—owner-occupied:
Risk Rating:
Pass$61 $75 $39 $24 $24 $40 $9 $— $— $272 
Special Mention1 — — 2 2 — — — — 5 
Substandard Accrual— 3 1 3 4 3 — — — 14 
Non-accrual— — — 1 — 8 — — — 9 
Total commercial real estate construction—owner-occupied:$62 $78 $40 $30 $30 $51 $9 $— $— $300 
Total commercial$13,952 $7,526 $5,112 $3,208 $1,665 $3,489 $13,665 $— $(42)$48,575 
December 31, 2020
Term LoansRevolving LoansRevolving Loans Converted to Amortizing
Unallocated (1)
Total
Origination Year
20202019201820172016Prior
(In millions)
Commercial investor real estate mortgage:
Risk Rating:
Pass$1,663 $1,243 $1,137 $252 $65 $162 $332 $— $(5)$4,849 
Special Mention5 77 76 15 — 7 — — — 180 
Substandard Accrual69 114 57 — 2 9 — — — 251 
Non-accrual— 44 1 — — 1 68 — — 114 
Total commercial investor real estate mortgage$1,737 $1,478 $1,271 $267 $67 $179 $400 $— $(5)$5,394 
Commercial investor real estate construction:
Risk Rating:
Pass$224 $601 $266 $1 $— $1 $679 $— $(11)$1,761 
Special Mention30 36 31 — — — 9 — — 106 
Substandard Accrual1 1 — — — — — — — 2 
Non-accrual— — — — — — — — — — 
Total commercial investor real estate construction$255 $638 $297 $1 $— $1 $688 $— $(11)$1,869 
Total investor real estate$1,992 $2,116 $1,568 $268 $67 $180 $1,088 $— $(16)$7,263 
Residential first mortgage:
FICO scores
Above 720$5,564 $1,738 $809 $1,023 $1,279 $2,709 $— $— $— $13,122 
681-720525 189 103 112 113 360 — — — 1,402 
620-680211 100 73 64 67 404 — — — 919 
Below 62031 44 50 51 60 499 — — — 735 
Data not available52 23 13 16 15 126 10 — 142 397 
Total residential first mortgage$6,383 $2,094 $1,048 $1,266 $1,534 $4,098 $10 $— $142 $16,575 
Home equity lines:
FICO scores
Above 720$— $— $— $— $— $— $3,334 $45 $— $3,379 
681-720— — — — — — 492 10 — 502 
620-680— — — — — — 319 11 — 330 
Below 620— — — — — — 181 7 — 188 
Data not available— — — — — — 107 3 30 140 
Total home equity lines$— $— $— $— $— $— $4,433 $76 $30 $4,539 
Home equity loans
FICO scores
Above 720$417 $251 $233 $325 $304 $580 $— $— $— $2,110 
681-72057 40 35 39 37 76 — — — 284 
620-68021 17 19 22 25 65 — — — 169 
Below 6202 7 9 13 15 52 — — — 98 
Data not available1 2 2 4 5 17 — — 21 52 
Total home equity loans$498 $317 $298 $403 $386 $790 $— $— $21 $2,713 
December 31, 2020
Term LoansRevolving LoansRevolving Loans Converted to Amortizing
Unallocated (1)
Total
Origination Year
20202019201820172016Prior
(In millions)
Consumer credit card:
FICO scores
Above 720$— $— $— $— $— $— $667 $— $— $667 
681-720— — — — — — 255 — — 255 
620-680— — — — — — 208 — — 208 
Below 620— — — — — — 91 — — 91 
Data not available— — — — — — 7 — (15)(8)
Total consumer credit card$— $— $— $— $— $— $1,228 $— $(15)$1,213 
Other consumer- exit portfolios:
FICO scores
Above 720$— $256 $555 $258 $152 $71 $— $— $— $1,292 
681-720— 79 127 57 34 17 — — — 314 
620-680— 46 92 47 30 15 — — — 230 
Below 620— 16 58 35 29 16 — — — 154 
Data not available— 3 6 8 5 4 — — 19 45 
Total other consumer- exit portfolios$— $400 $838 $405 $250 $123 $— $— $19 $2,035 
Other consumer:
FICO scores
Above 720$506 $646 $226 $47 $7 $3 $117 $— $— $1,552 
681-720100 143 59 11 1 1 52 — — 367 
620-68043 59 28 7 1 — 42 — — 180 
Below 62012 20 12 3 1 — 19 — — 67 
Data not available46 1 1 — — 1 3 — 135 187 
Total other consumer$707 $869 $326 $68 $10 $5 $233 $— $135 $2,353 
Total consumer loans$7,588 $3,680 $2,510 $2,142 $2,180 $5,016 $5,904 $76 $332 $29,428 
Total Loans$23,532 $13,322 $9,190 $5,618 $3,912 $8,685 $20,657 $76 $274 $85,266 
________
(1)These amounts consist of fees that are not allocated at the loan level and loans serviced by third parties wherein Regions does not receive FICO or vintage information.
(2)Commercial and industrial lending includes PPP lending in the 2021 and 2020 vintage years.
AGING AND NON-ACCRUAL ANALYSIS
The following tables include an aging analysis of DPD and loans on non-accrual status for each portfolio segment and class as of December 31, 2021 and December 31, 2020. Loans on non-accrual status with no related allowance included $127 million and $112 million of commercial and industrial loans as of December 31, 2021 and 2020, respectively. Non–accrual loans with no related allowance typically include loans where the underlying collateral is deemed sufficient to recover all remaining principal.
 2021
 Accrual Loans   
 30-59 DPD60-89 DPD90+ DPDTotal
30+ DPD		Total
Accrual		Non-accrualTotal
 (In millions)
Commercial and industrial$35 $29 $5 $69 $43,453 $305 $43,758 
Commercial real estate mortgage—owner-occupied3 1 1 5 5,235 52 5,287 
Commercial real estate construction—owner-occupied— — — — 253 11 264 
Total commercial38 30 6 74 48,941 368 49,309 
Commercial investor real estate mortgage— — — — 5,438 3 5,441 
Commercial investor real estate construction— — — — 1,586 — 1,586 
Total investor real estate— — — — 7,024 3 7,027 
Residential first mortgage73 31 123 227 17,479 33 17,512 
Home equity lines15 6 21 42 3,704 40 3,744 
Home equity loans7 4 12 23 2,503 7 2,510 
Consumer credit card9 6 12 27 1,184 — 1,184 
Other consumer—exit portfolios1042161,071—1,071
Other consumer31 15 13 59 5,427 — 5,427 
Total consumer145 66 183 394 31,368 80 31,448 
$183 $96 $189 $468 $87,333 $451 $87,784 
 
 2020
 Accrual Loans   
 30-59 DPD60-89 DPD90+ DPDTotal
30+ DPD		Total
Accrual		Non-accrualTotal
 (In millions)
Commercial and industrial$37 $22 $7 $66 $42,452 $418 $42,870 
Commercial real estate mortgage—owner-occupied4 1 1 6 5,308 97 5,405 
Commercial real estate construction—owner-occupied1 — — 1 291 9 300 
Total commercial42 23 8 73 48,051 524 48,575 
Commercial investor real estate mortgage3 — — 3 5,280 114 5,394 
Commercial investor real estate construction— — — — 1,869 — 1,869 
Total investor real estate3 — — 3 7,149 114 7,263 
Residential first mortgage104 41 156 301 16,522 53 16,575 
Home equity lines24 11 19 54 4,493 46 4,539 
Home equity loans10 7 13 30 2,705 8 2,713 
Consumer credit card8 6 14 28 1,213 — 1,213 
Other consumer—exit portfolios2274332,035—2,035
Other consumer17 8 7 32 2,353 — 2,353 
Total consumer185 80 213 478 29,321 107 29,428 
$230 $103 $221 $554 $84,521 $745 $85,266 
TROUBLED DEBT RESTRUCTURINGS
Regions regularly modifies commercial and investor real estate loans in order to facilitate a workout strategy. Typical modifications include accommodations, such as renewals and forbearances. The majority of Regions’ commercial and investor real estate TDRs are the result of renewals of classified loans at an interest rate that is not considered to be a market interest rate. For smaller dollar commercial loans, Regions may periodically grant interest rate and other term concessions, similar to those under the consumer program described below.
Regions works to meet the individual needs of consumer borrowers to stem foreclosure through its CAP. Regions designed the program to allow for customer-tailored modifications with the goal of keeping customers in their homes and avoiding foreclosure where possible. Modification may be offered to any borrower experiencing financial hardship regardless of the borrower’s payment status. Consumer TDRs primarily involve an interest rate concession, however under the CAP, Regions may also offer a short-term deferral, a term extension, a new loan product, or a combination of these options. For loans restructured under the CAP, Regions expects to collect the original contractually due principal. The gross original contractual interest may be collectible, depending on the terms modified. All CAP modifications are considered TDRs regardless of the term because they are concessionary in nature and because the customer documents a financial hardship in order to participate.
As noted above, the majority of Regions’ TDRs are results of interest rate concessions and not a forgiveness of principal. Accordingly, the financial impact of the modifications is best illustrated by the impact to the allowance calculation at the loan or pool level, as a result of the loans being considered impaired due to their TDR status. Regions most often does not record a charge-off at the modification date.
As provided initially in the CARES Act passed into law on March 27, 2020 and subsequently extended through the Consolidated Appropriations Act signed into law on December 27, 2020, certain loan modifications related to the COVID-19 pandemic beginning March 1, 2020 through the earlier of 60 days after the end of the pandemic or January 1, 2022 were eligible for relief from TDR classification. Regions elected this provision of both Acts; therefore, modified loans that met the required guidelines for relief are not considered TDRs and are excluded from the disclosures below.
The following tables present the end of period balance for loans modified in a TDR during the periods presented by portfolio segment and class, and the financial impact of those modifications. The tables include modifications made to new TDRs, as well as renewals of existing TDRs.
 2021
   Financial Impact
of Modifications
Considered TDRs
 Number of
Obligors		Recorded
Investment		Increase in
Allowance at
Modification
 (Dollars in millions)
Commercial and industrial65116—
Commercial real estate mortgage—owner-occupied2811—
Commercial real estate construction—owner-occupied22—
Total commercial95129—
Commercial investor real estate mortgage877—
Commercial investor real estate construction———
Total investor real estate877—
Residential first mortgage492858
Home equity lines71—
Home equity loans726—
Consumer credit card1——
Other consumer—exit portfolios ———
Other consumer803—
Total consumer652958
7553018
 
 2020
   Financial Impact
of Modifications
Considered TDRs
 Number of
Obligors		Recorded
Investment		Increase in
Allowance at
Modification
 (Dollars in millions)
Commercial and industrial151$250 $— 
Commercial real estate mortgage—owner-occupied2116 — 
Commercial real estate construction—owner-occupied11 — 
Total commercial173267 — 
Commercial investor real estate mortgage1178 — 
Commercial investor real estate construction45 — 
Total investor real estate1583 — 
Residential first mortgage37885 11 
Home equity lines—— — 
Home equity loans434 — 
Consumer credit card14— — 
Other consumer- exit portfolios17— — 
Other consumer491 — 
Total consumer50190 11 
689$440 $11